Fall 2021 forecasts for the UK property market

Real estate experts at 1newhomes gathered the latest UK property market forecasts and insights from industry professionals.

Recent and current market settings

The recent UK property boom was driven by the stamp duty tax relief introduced in Summer 2020. The demand skyrocketed, meaning ambitious buyers splashing out on new homes. It led to a 13% increase in house prices in the UK since March last year.

However, the Stamp Duty Holiday ended 31 June this year. We now see its gradual return to the previous rates by 1 October 2021.

The current trend is that estate agents expect a poor supply of properties to hold back noticeable falls in prices during the upcoming months to December holidays.

According to Halifax, London houses became 0.3% more affordable in August and 1.3% more expensive year-on-year (YoY).

Taking into account high sales volumes, industry experts predict poor supply to suppress the critical property price drops. In fact, Savills forecasts a 12% increase in mainstream London property prices by the end of 2025.

According to The Royal Institution of Chartered Surveyors (RICS), demand for residential property slightly goes down. But the supply falls too: the stock levels of estate agents are down by 10% since the beginning of 2021.

What do professionals say?

Allan Fuller (FRICS) is the managing director of Allan Fuller Estate Agents. He says that the demand for family houses in Putney is strong but «less frenetic» than during the height of the tax relief.

Jeremy Leaf is the principal of Jeremy Leaf & Co. He reveals easing demand in North London since the stamp duty tax gradual return. However, he points out that the «steam» is still in the market. A busy market state is supported by a weak supply of 3- and 4-bedroom houses particularly and competitive financial offers.

Extra real estate insights

Tom Bill is Head of UK Residential Research at Knight Frank. He expects a more stabilised property market in the upcoming months. The levels of activity might be «brisk» but not «frenetic» as during the recent UK property market hype.

He points out two key figures:

– 24% more new buyers registered in August 2021 compared to the 5-year average.

– 8% fewer new homes were delivered compared to the August 5-year average.

Bill predicts the improving market settings to empower ambitious sellers, while others may assess the wider covid fallout during the Christmas holidays. The forecasts for the property market in the UK, its volumes and house prices depend on these «two respective camps».

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

UK monthly property transactions for May 2025

Headline statistics from the latest transactions data include: the provisional seasonally adjusted estimate of the number of UK residential transactions in May 2025 is 81,470, 12% lower than May 2024 and 25% higher than April 2025 the provisional non-seasonally adjusted estimate of the number of UK residential transactions in May 2025 is 80,530, 13% lower than May 2024 and…
Read More
Breaking News

Construction Skills Mission Board (CSMB) shows the Government has a plan

The Construction Skills Mission Board (CSMB) held its first board meeting today (26 June 2025), where it set out a roadmap for recruiting 100,000 more construction workers a year by the end of Parliament. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “The Construction Skills Mission Board (CSMB) is a recognition…
Read More
Paint Stripper Tools
Estate Agent Talk

5 Strategies to Optimise Your Warehouse for Real Estate

The term fixer-upper can mean many things, from ‘slap some paint on the walls and it looks brand new’ to ‘will this building collapse if we open the front door?’ Indeed, in the dicey world of commercial property acquisition, each warehouse you buy will probably fall into both camps. Thinking about the viability of warehouses…
Read More
Breaking News

HMOs sell for up to 50% above market average

New research from Excellion Capital, the boutique debt advisory and investment firm, reveals that HMOs sell for as much as 50% above the average house price, further increasing their investment potential after it was revealed that HMOs also create rental yields of up to 12.5%. After previous research from Excellion Capital recently showed that the…
Read More
Breaking News

UK buyers struggle while 50,000 homes sit empty

As the UK housing crisis deepens, new analysis by Open Property Group exposes a worrying surge in so-called “zombie homes”- properties that sit unoccupied and deteriorating while millions struggle to access affordable housing. Key insights: 50,000+ long-term vacant homes in England alone 23,000+ of these have been empty for more than two years Estimated £13.6…
Read More
Breaking News

Breaking Property News 26/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   The UK is Europe’s second most distressed market despite headline GDP growth Retail and Consumers Goods has emerged as the most distressed sector in Europe, with distress levels now the highest since the global financial crisis, according to the latest Weil European Distress Index (WEDI). The…
Read More