14th Dec 2020 06:52
(Alliance News) - Rightmove PLC on Monday said that demand for housing in the UK will outweigh consumer uncertainty in 2021, with prices expected to grow by a single-digit percentage and slightly slower than in 2020.
In the Rightmove monthly house price index, the property portal forecasted the national average price to grow by 4% in 2021 as "housing priorities stay high on people's life agendas".
Rightmove said: "The unexpected market momentum of 2020 overcame the unknowns of the pandemic and associated economic fallout, and though headwinds and uncertainties remain, demand for housing and buyer affordability appear to be strong enough to outweigh some of these dampening effects."
However, price rises for newly marketed properties will be at a slower pace than seen this year, Rightmove predicted.
On a yearly basis, the Rightmove index showed that average UK house prices rose by 6.6%. In December, prices fell 0.6% month-on-month.
Rightmove Director of Property Data Tim Bannister said: "Our 2021 forecast of a 4% price rise is more conservative than the unsustainable 6.6% national average seen this year. There’s likely to be a lull in quarter two unless the stamp duty holiday is extended, but for many buyers its removal will not be make or break, though may lead them to reduce their offers to a degree to compensate for the higher tax, and indeed many sellers may be prepared to help to mitigate their buyer’s financial loss."
Pandemic-related uncertainties have been around for a year, while Brexit-related uncertainties have been around for even longer, Rightmove noted, but record activity month after month "has proved that movers are willing and able to act on their new or existing housing priorities".
"Despite these headwinds, ongoing demand still remains very high, indicating that there's plenty of fuel left in the tank for the housing market," Bannister said.
By Greg Roxburgh; [email protected]
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