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.

You May Also Enjoy

Breaking News

Freehold and Leasehold Reform Act-lessees can control their own destiny

Matthew Pennycock, Minister of State for Housing and Planning, has made a Parliamentary Statement regarding the future progress of the Freehold and Leasehold Reform Act 2024. The Government have formally recognised the “significant complexity of the task” and that the legislation was rushed in at the end of the last parliament and as a result…
Read More
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 22/11/24

The current average asking price of a typical first-time buyer property is £225,340. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was…
Read More
Estate Agent Talk

The Architecture Of Attention Behind Social Media Addiction

In the digital age, social media platforms have revolutionized how we connect, share, and consume information. Behind their sleek interfaces lies a sophisticated architecture of persuasive technology.  These platforms employ intricate design patterns and technical elements to capture and hold user attention. From subtle visual cues to complex algorithmic systems, every feature serves a calculated…
Read More
Breaking News

2025 Predictions for the Private Rental Sector

Allison Thompson, National Lettings Managing Director, Leaders Romans Group (LRG) “As we approach 2025, the lettings industry is entering a phase marked by stabilisation and opportunity. Rental inflation has slowed to an average of 3-4% for new lets, reflecting the effects of affordability constraints; renters’ budgets are beginning to limit how much rents can rise.…
Read More
Breaking News

Response to Matthew Pennycook’s Statement on Leasehold Reform

Yesterday, Secretary of State Matthew Pennycook made a Ministerial Statement on the future of leasehold reform. Responding, Mark Chick, director of ALEP and a Partner at Bishop & Sewell LLP said: ALEP welcomes the ministerial statement which puts in place a timeframe and some objectives for the implementation of the Leasehold & Freehold Reform Act.…
Read More
Estate Agent Talk

Essential Garage Storage Solutions for Small Spaces

Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1.  Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More