Covid-19 Aftermath: What’s The Deal For The Property Market?

Alena Rinwi
·2-min read

Y predicts this, and X predicts that. Mid-pandemic, one month into a newfound Brexit deal – it’s fair to say it’s almost impossible to predict what the future will look like.

Sure, we never could have previously predicted the rollercoaster that was 2020. But, what has it taught us? It’s taught us that, even in the hardest of times, certain markets can still rocket.

The latter part of 2020 saw the UK property market boom, following the lockdown restrictions in March. When supermarkets became the new solace, so did getting on – or moving up – the property ladder.

Of course, this was fuelled by Rishi Sunak’s stamp duty cuts, as well as the historically-low interest rate for the Bank of England (BoE). But, with the stamp duty holiday set to come to a halt at the end of March, where do we stand?

Despite the BoE’s pessimistic predictions for the UK housing market to plummet by up to 16% this year, Astute Capital’s Richard Symonds claims it will continue to be an attractive one:

“Recent research from the ONS indicates that property prices across the UK are soaring. Areas such as Wales have experienced a rapid average growth rate of 20% in just twelve months, and, considering what happened last year, that is nothing short of phenomenal.”

“Retail and commercial markets in the UK are under a lot of pressure right now, but the residential market continues to grow rapidly, to keep up with demand. Just a month ago, house prices were at an all-time high! Of course, nothing is guaranteed, but we are optimistic for 2021”, Symonds concludes.

Granted, we are still mid-pandemic and have a long way to go before life – as we once knew it – is restored again. But nevertheless, it is important to note that not all hope is lost in the property market, and both businesses and investors could in fact see multiple opportunities for growth in 2021.