Housing bubble to burst in 2021. Or will it???

Some say that we have had a mini boom this year in house price values across the country. Despite a global economical tragedy in the form of covid-19 causing not only closures and rethinking of estate agents, but also each and every other business sector, house prices in England have not seen a negative impact, in fact quite the opposite.

Some also say that the current property market is being propped up by stamp duty holidays, mortgage / rental payment holidays and furlough helping to keep many people afloat. All this is said to be coming to a finish towards the end of 2020 and that 2021 is looking rather bleak and many predict a housing market crash.

Of course, fears of and scare mongering about a housing market crash has been around for nearly ten years now as it is more that a decade since the economy threw us a negative growth in property prices. Many people have been expecting and waiting for a break in property price inflation, but it seems to just keep on coming no matter what is thrown at it.

So what is causing the property prices to grow continually despite global economic disasters? Here in the UK we have for many years seen a growing demand for property in certain areas, London mostly, and also for certain types of property and especially those which are ideal for investors / landlords. Demand remains high due to immigration still vibrant in to the UK and that in most cases the targets set for new builds / affordable housing have not been met.

So, if 2021 is looking bleak in that many people will have less financial backing then this will mean for sure more defaults in mortgage payments and tenant evictions? Not necessarily so… The government are putting in to place more security for tenants in line with the current and near future of the economical climate and if there are concerns for property price values decreasing then surely new builds / brownfield sites will suddenly slow done further thus putting pressure again on housing?

Covid-19 has changed the way many think about their life and a focus has been put on to our lives outside of work again and many living in tight spaces in major cities paying premium prices purely on location / proximity to their place of work have been looking to move out to the countryside and coastal regions. Not only can it prove to be a less stressful and a healthier lifestyle, many countryside and especially coastal areas hold property at much better economical value, and importantly, also much larger sized enabling the likes of home office spaces / garden offices.

A property price crash for 2021? For sure a small correction, but there is enough demand, enough new build target failures and enough demand for quality homes that many areas will stand firm and even, dare I say, see a further small increase in value during 2021.

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

UK house prices growing by 2.5% according to Halifax

Nathan Emerson, CEO of Propertymark: “This slight dip in house prices will likely have been influenced as a direct consequence to the current state of the global economy. There will always be a need for people to move house regardless of international trading relations; however, many aspiring or current homeowners will no doubt be discouraged…
Read More
Breaking News

UK house prices dip slightly in May, but market remains steady

Average property price now £296,648 compared to £297,798 last month Annual rate of growth slows to +2.5% from +3.2% in April Overall house prices have remained stable so far this year Northern Ireland continues to lead annual price growth in the UK Amanda Bryden, Head of Mortgages, Halifax, said: “Average UK house prices fell by…
Read More
Breaking News

Estate Agent Content

Do you think that your estate agency / property business requires content? Is content marketing still a thing in 2025? Are you concerned if anyone will read your words? Is it worth investing in estate agent content? Businesses with blogs generate 67% more leads than those without. As competition for attention online increases it remains…
Read More
Breaking News

The cost of voids rises by £200 for England’s landlords

The latest analysis by Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has found that landlords have been hit with a 26% increase in the cost of void periods in the past year, equivalent to lost income of almost £200. Dwelly analysed average void period data from March 2024 and March…
Read More
Breaking News

Breaking Property News 5/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Demand Rises for Housing and Infrastructure Projects Rising demand for housing, infrastructure and energy projects across Wales has driven continued growth at Lichfields’ Cardiff office, which this year marks 25 years in the capital. The team of 17 planning professionals is one of the largest…
Read More
Breaking News

Construction continues to enjoy a season in the sun

Underlying performance is on the rise during Q.2 2025 Today, Glenigan, one of the construction industry’s leading insight experts, releases the June 2025 edition of its Construction Index. The Index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise…
Read More