UK House Prices Grew Quickly

3rd December 2020 posted in PROPERTY NEWS

At Country Properties, we are committed to providing you with invaluable insight and support when it comes to the Royston housing market. We are pleased to say we know the local market well, and we have helped many local vendors and buyers in recent weeks and months.

2020 has been a challenging year, but it has seen considerable engagement in the property market. The end of year figures for transactions are positive across the country. We stay in touch with the national market as closely as we do the local market, and we aim to help you make an informed decision whatever you decide to do next.

Housing market performing well at end of 2020

UK house prices grew at an annual rate of 6.5% in November, which is the fastest rate of growth since January 2015. Nationwide’s House Price Index indicate prices rose on a month-on—month basis by 0.9% in comparison to November 2019 figures.

The average house price in the United Kingdom stands at £229,721, up from £227,826 last month. For Royston, Rightmove says; “Properties in Royston had an overall average price of £375,875 over the last year.”

The number of property transactions in this period reached 105,600, which is the highest since 2016. The mortgage approvals also reached a highest level since 2007.

Robert Gardner, Nationwide’s chief economist, said: “The outlook remains highly uncertain and will depend heavily on how the pandemic and the measures to contain it evolve as well as the efficacy of policy measures implemented to limit the damage to the wider economy. Behavioural shifts as a result of Covid-19 may provide support for housing market activity, while the stamp duty holiday will continue to provide a near term boost by bringing purchases forward.”

Market movers must be realistic

While the end of 2020 is finding the housing market in robust mood, it is important to realise there will be challenges in the year which lies ahead. The end of the stamp duty holiday, further economic impact due to COVID-19 and Brexit are all factors which will shape buyer behaviour.

There is hope that a vaccine will allow the country, and economy, to move forward with greater confidence, but for now, it is important people considering moving home in 2021 are mindful of the challenges.

EY Item Club’s chief economist Howard Archer said; “The EY Item Club suspects that house prices could be around 5 per cent lower than now by mid-2021. The housing market is likely to come under mounting near-term pressure amid rising COVID-19 cases and lockdown restrictions, while there is likely to be a significant rise in unemployment even though the furlough scheme has been extended until March. Meanwhile, earnings have been limited and are likely to remain so.”

There is never a perfect time to move home, and there are always challenges to overcome. At Country Properties, we like to think we are well placed to assist you, and we will make sure you make an informed decision.

In line with Government guidelines, our Royston branch is open and is staffed with sales and lettings personnel.  If you have any queries or need advice on property sales and lettings then please call 01763 245121 or email royston@country-properties.co.uk.