There is no denying 2020 has been a pivotal year in the housing market. The November and December lockdown period has caused many people to further re-evaluate what is important to them, but of course, the housing market has remained open at this time.
At Williams of Petersfield, we know people are looking for guidance and assistance. We work closely with local buyers and vendors, and we have a good feel for what is happening in Petersfield. We also stay in touch with what is happening across the country.
If you are looking to make an informed decision in the property market, we are here to help.
Zoopla are reaching out to buyers and vendors
Richard Donnell, the director of research and insight at Zoopla, recently answered a range of questions on the property portal site.
One topic of considerable interest was the growing gap in the housing market, and the general economy. There is a growing feeling that “we are not all in this together”, and this can be seen in the housing market activity of 2020.
With the House Price Index referring to increasing polarisation in the property market, it is natural people are keen to learn what this means, and how it is seen in 2021.
Richard said; “National measures of housing market activity, such as house prices and sales volumes, are strong. But this picture is not uniform across the UK. There is uncertainty in some parts of the housing market, with rising unemployment and stricter lending among the economic pressures taking their toll. You can see fewer sales in less wealthy markets, where people are more sensitive to economic headwinds.”
Richard also said; “At the other end of the spectrum, there’s more activity in wealthier markets where homeowners feel the recession less acutely. This is also tied to the fact that the housing market in London and the south of England has been quite weak in recent years so it’s bouncing back more than other markets.”
Will there be a long-term impact on the housing market?
When asked about the short and long-term effects of the second lockdown, Richard said; “The housing market is one of the bright parts of the economy, and the government has made sure that it remains open throughout the second lockdown. With people unable to get out and about as they normally would, the second lockdown will emphasise once again the importance of the home. People will keep re-evaluating their home and lifestyle. But despite the furlough and the mortgage payment holiday schemes both being extended, the economic pressures remain.”
Richard was asked what impact the second lockdown will have on house prices. He responded by saying; “It won’t have a significant impact on house prices because the housing market is still open for business. Headline house price growth will continue to rise towards 4% by the end of the year. However, it’s important to remember that there is significant regional variation. Everyone’s homes sit in different housing markets, and what happens to values reflects local supply and demand, as our House Price Index shows.”
At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.