Starting the New Year with thousands of prospective buyers

A top property director offers predictions for the property market in 2021

Although there are many complex factors and general economic uncertainty for the year ahead, Peter Ryder, Managing Director of the Estate Agency operation at Thorntons, expects the start of 2021 to be busy with buyers as they try to beat the stamp duty holiday due to finish at the end of March.

Peter said: “There are a record number of buyers out there according to the National Association of Estate Agents’ recent figures and that is mirrored by our own figures at Thorntons. We currently have in excess of 10,000 clients on our buyers list. 

“We’ve observed our clients wanting to move for various reasons including lifestyle changes and differing working patterns which were caused by the pandemic but will be here to stay long term.

“Reasons for moving include the need for extra space as more people will be working from home on a regular basis, wanting a garden, moving out of the cities into larger rural properties, not needing to live as close to the office for commuting and moving to be closer to family and friends. As well as people wanting more space, some are downsizing as they realise the property is too big for them to maintain.

“We have observed investors moving out of the property market due to the potential increase in capital gains tax which is likely to be announced. This should help with stock levels if they decide to sell. Along with historically low interest rates and the fact that people still see bricks and mortar as a good long term investment this should help maintain the market for the rest of 2021.

“This observation is on the assumption that the United Kingdom will reach a trade agreement with the EU to keep the goods coming into the country as if we don’t this may have an effect on the ability of builders to deliver New Homes on time.

“Although UK house prices have increased since the first lockdown ended in June we can see evidence that the market is now slowing down from the bounce effect and is settling into a new pattern.

“The demand for good quality housing is still there so I would predict a small rise in house prices of around one to two percent during 2021. With the good news that a vaccine will be available soon I would expect the market to return to a more normal market in the second half of 2021. I would expect this rise to continue into 2022 where house prices should increase by around three to four percent.

“Regarding transaction levels as we will have quite a number of property completions in the first quarter of 2021 I would expect levels to be very similar with 2020 levels and again this should rise in 2022.

“It is difficult to know for sure but from my observations this year I am hopeful for a buoyant future for the property market.”