Property prices are likely to continue rising for some time despite reaching a new record high in May, according to many of Britain’s real estate agents. The value of homes sold in the UK will reach £461bn in 2021, indicating a constant “race for space”. 

Top real estate market leaders said their predictions indicated the property market in 2021 was already on course to be the busiest for 14 years. Those figures came on the back of data showing that the UK’s real estate sector has defied expectations in the last few months to win double-digit price growth.

This sudden market drive has been fuelled by factors, including the stamp holiday introduced last year, new government pledges for the mortgage, and a buyer spillway that prioritised properties with bigger gardens and more room for working for home.  

Demand for bigger and roomier properties is exerting upward pressure on prices, and its locations outside London and the southwest, where buyer interest continues to increase.

Half of UK homebuyers under pressure to buy

Property panic-buying could be driving homeowners ‘regret, as new research shows. More than 2,000 UK homeowners, ranging from those who had purchased this year to those who had bought prior to 1997, agreed on a sale between March 2020 and June 2021. Over 68% of house buyers were caught under the pressure of purchasing quickly when buying their latest properties, rising to almost 94% of buyers who agreed on sales during the pandemic. 

In most cases, hasty homeowners made one of their biggest financial decisions after not even a day of research. The survey found people spent 40 minutes viewing their home before opting to buy- although this figure was significantly higher for those purchasing during the pandemic, taking on average around 46 minutes. The odds are, 15 % of viewers trusted their choices after less than 20 minutes. 

What’s the buying rush? 

Homeowners who felt under the buying rush did so for a number of reasons. Those buying the COVID-19 pandemic were mostly brought around by the stamp duty holiday (34%), although many also claimed they didn’t want to miss out as homes were selling so quickly. Another unanticipated 30% said they have missed out on other properties because they didn’t come with an offer quick enough. 

Locally, people were most likely to feel the need to purchase quickly in London, where 85% of them said they felt under pressure. 

Others chase tax cuts….

The number of properties being sold increased considerably during the stamp duty holiday. Recent data shows that 114,940 sales went up throughout May 2021. In the meantime, we’re getting a better understanding of the impact coronavirus has had on property prices: continued uncertainty and the stamp duty holiday only means the figures will continue to fluctuate. 

In the remainder of 2021, there has been a great deal of optimism around the real estate market of late, with homebuyers competing over properties in the most sought-after areas. 

Best places to live in the UK, based on six factors

Some of the best places to live in the UK in 2021 have been determined by factors like population density, house prices, crime rates, amount of green space, and disposable income. These metrics have made it possible for Brits to relocate, and according to research, Devon, Cumbria, Durham, Horsham, and Cornwall were among the best places to live in the UK in 2021. 

When it comes to criminality rates, Cornwall and Horsham had the lowest scores, followed by North Yorkshire, indicating they are a safer bet. 

In terms of population, Cleveland and Cumbria had the lowest numbers, if a serene existence is a top priority. These were compared to London, West Yorkshire, and the Thames Valley, which happen to be the most crowded. 

2020 encouraged the nation to seek the orchards and large but serene places, and for many, access to green space has slipped into their priority list when it comes to relocation.

Take Horsham – it has recently been crowned one of the UK’s best places to live, as the annual quality of life survey shows. This small Sussex town made it to the top of the top due to high life expectancy, exam results, excellent health and happiness scores, and above-average earnings.

The survey looked at how local authority areas compare, taking into consideration nearly 26 different factors that people may consider when choosing a place to live. Factors like employment, health, housing affordability, wellbeing and health, education, crime rates and traffic rates.

Brits have different priorities when it comes to choosing housing options, depending on personal circumstances and time of life. Affordability, however, remains one of the most crucial factors, with placing a foot on the housing ladder still difficult for some people.

Lack of Supply Keeps Prices High

The recent rise in demand from homebuyers hasn’t been satisfied by a wave of new housing options coming on to the market, and this instability could keep prices high in the coming months, even with low tax savings on offer.

Realtors claim that the market is experiencing a mounting imbalance of supply and demand, and there’s no indication that the supply level will increase. In the meantime, UKs maintains its strong seller’s market, which will impact property value as people bid to secure their dream home.

To halt a multitude of viewing for an estate while restrictions are still up and going, realtors have moved to the traditional practice of creating a hotlist of trustworthy buyers who can act swiftly.

One of the hottest housing markets – in terms of time to secure sale and price growth – were Yorkshire and North-west England. In the central locations of London, by contrast, properties are taking nearly two months to sell, which is much longer than the 2017-2019 average, while the prices for inner London are the same as last year.

In the meantime, Brits remain optimistic that the improving weather, the forthcoming relaxation of COVID-19 restrictions, low interest rates, and a longing for more space will help them relocate.


Author's Bio: 

Cynthia Madison