The local housing market forecast is looking very positive
It is a question we are often asked in these days of an uncertain housing market; will the bubble burst when the stamp duty holiday is over?
This has been difficult to call in previous months, but now definite patterns are emerging which are casting a great deal of optimism on the local housing market.
The outlook looks positive for the rest of the year and over the next five years.
Average prime regional values rose by 2.2% in the first three months of 2020, the highest quarterly increase since March 2010, and by 5.1% annually, the highest since September 2014 before the stamp duty review, according to The Guardian.
It now looks like average house prices will rise by 4% this year in our region, at twice the rate we thought at the turn of the year – and by a whopping 21% over the coming 5 years.
But how can this be? Clare Phillips, Partner at Phillips George explains: “House prices across the county have been lifted by a race for space, as people have changed their lifestyles during the pandemic, and by cuts to stamp duty. This is combined with the stamp duty holiday, and a pent-up demand for new housing has now been identified.”
A recent Savills survey saw 25% of respondents say the vaccine rollout, coupled with pent up demand from those who have put moves on hold during lockdown, will sustain demand over this year and well beyond.
“We expect to see the decisions made during lockdown continue to support buyers’ activity right across the market, whether that be families looking for more space, young professionals wanting to move closer to work, and a backlog of potential buyers who are seeing out the pandemic before they make their move into the market.”
Clare continues; “We have to be careful when watching national news as it can be skewed to London concerns, and it is thought that already inflated London prices will not do as well as we will in Leicestershire.”