While 2020 came with a lot of change due to the covid-19 pandemic, most people are feeling a little more hopeful
in 2021. The pandemic forced several
changes in the lifestyles and livelihoods of millions of people. News regarding
the EU trading relationship was not clear.
On Christmas Eve, the government stated that a free trade deal was established
with the EU. This gave the New Year 2021 a brim of hope in business
revival and a reassurance that things would be alright.
While this is the case for regular businesses, the housing market and the
housebuilding field still remains uncertain what is in store for them in the New Year.
With changes come several adaptation problems. But still, there is cause for feeling positive
about the year, as the challenges for the New Year are still untold.
Let’s take a look at some of the things that will be changing for the
housing market in 2021.
Certainty after Lockdown
The real estate and housing market is usually very volatile. It is, almost every
year, characterised by unpredictability and uncertainty as it hugely relies on
other markets. Coming to the end of 2020, the second lockdown came to an end,
which paved the way for an increase in pent-up demand. According to reputable
sites such as Property Price Advice, the
number of valuation requests increased to over 70%, which was a good sign. The
housing market was making a great comeback after the lockdown.
Increased Market Confidence
Usually, the confidence in any market determines the kind of business decisions
that housebuilders can make. These fields include planning for the construction
of pipelines, determining the rates, valuation, and anticipated build-out
rates.
The Impact of Brexit
Even better, Brexit had a positive impact on the housebuilding industry as it enhanced the
market's certainty and stability. It became a regulator for the covid-19
pandemic and people began investing once more. Following these changes, 2021
seems to be a good year for housebuilders as the path is set.
Critical Issues at Hand
Stamp Duty Holiday and Mortgage Holiday Scheme
Since the Brexit debate is out of the question, the next issue is the March
31st deadline. When the month of March ends, housebuilders face the end of the stamp duty
holiday and the mortgage holiday scheme. These two initiatives come about
during the covid-19 pandemic and have had an impact on the housing market.
According to reputable sources, most house hunters have put their money pending
until the end of March.
Testing Q2
Most forecasters and industry specialists predict that a testing Q2. Following
the end of the furlough scheme that is most likely to occur as January comes to
an end. Property experts expect the miniboom end to manifest in February.
3 Reasons to Be Positive
Besides these critical issues at hand, there are still many reasons to be
positive. Let’s explore them.
1. House-Hunters Saved Money during the Pandemic
Looking back at the first lockdown of 2020, there came about the accidental
saver concept. When the government imposed restrictions on the housing market,
house-hunters had fewer chances to spend and more to save. As such, most people
saved and expect to make purchases after the lockdown. This has already been
seen in the post-lockdown period that experienced a boom in the sales.
2. Better Mortgage Options for House-Hunters
Since the government has imposed more friendly and favourable lending
conditions and terms, more people are expected to take advantage of this and
purchase properties. The low deposit mortgage options and interest rates create
a suitable welcome back for house owners.
3. The Government Initiatives to Boost the Housing Market
Even better, the government has several initiatives to bolster the
housebuilding industry. The Home Building Fund will give 4.5bn to support the
industry, especially in building new homes.
Contact Us for More
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Regardless of the size of your industry, we are here for you. Get in touch with
us today and scale in 2021.
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