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 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