As the headlines this morning announce the largest house price increases in six years, buyer demand continues here in Yorkshire. Indeed, the December Rightmove report showed house prices in Yorkshire increased 8.8% last month.
The view for 2021
There is bound to be a rush in early 2021 to make the “Stamp Duty Holiday” deadline of 31st March. This will be an extension of the surge in buyer demand first seen at the beginning of the first lockdown in March 2020. According to Rightmove’s most recent figures, that demand is up by 53%.
As we settle into 2021, we expect house price growth to become more moderate, as supply begins to meet demand. The Covid vaccination program, Brexit trade deal and the return to GDP growth, predicted to be 6.3% for the year (Oxford Economics), will add to consumer confidence. On the other hand, unemployment will continue to rise in the short term, with Covid causing problems for the first part of 2021, at the very least.
Buyers are taking a medium to long-term view when purchasing homes. Particularly in the prime markets, increasing numbers of affluent buyers are trading up. Perhaps short-term property speculation is a thing of the past, where our homes are concerned. It seems people are prioritising space and quality of life, making savings elsewhere when taking the decision to move. We are expecting a continuation of buyers from local urban conurbations, London and the South East, making the move to start a new life in rural Yorkshire in 2021, in many cases made easier by the move towards home working.
Our Expert Opinion author is Ben Pridden, Director at Hewetson & Johnson. With over 25 years’ experience selling some of Yorkshire’s most aspirational homes, Ben’s knowledge of the market is impressive. If you’d like to discuss your next move, please get in touch.