The UK housing market has proved to be resilient once more in the face of uncertainty. As it did in the beginning moments of Brexit, the market proved to still be an attractive draw and remained fluid during a global pandemic. While house prices have surprised experts and have unexpectedly shown strong growth in some areas, there are valid reasons why home buyers are showing up.
The new year is only days away and while the calendar date will be new, some things will remain the same. The pandemic will still be with us, and the housing market is expected to stay pretty much as it is through early spring. Lending might tighten somewhat, but opportunities are still to be available in mortgages and remortgages. Low interest rates, competitive lenders offering attractive deals, and a variety of products from which to choose will keep demand strong from home buyers and homeowners.
Homeowners that have had their mortgage deal end and have been moved to their lender’s standard variable rate (SVR) are encouraged to consider a remortgage. Studies have shown that the average homeowner could save £200 or more per month with a remortgage. That means without considering a remortgage homeowners could be paying more than necessary.
The housing market will continue to show resilience as the pandemic continues into 2021 according to experts. Rightmove, an online property lister, expects house prices to increase by 4% next year. The optimistic outlook for growth in the midst of a pandemic is not surprising for those currently shopping for property. The demand is strong as buyers seek more appropriate dwellings for their pandemic lifestyles.
Homeowners are looking to better equip their home for their pandemic lifestyle. It appears that while many are upgrading and improving their current property, a large number are choosing to move home. It could be that they are enlarging the area to accommodate a work space or study space. Some homeowners may be enlarging their home to include extended family members to allow time together rather than being apart during lockdowns.
The UK housing market has experienced yet another impressive gain. November data revealed the strongest five month gain since 2004. Home values increased 6.5% since June, with the cost of an average home rising £3,000 according to Halifax. The average house price is £253,243, which has shown an increase of more than £15,000 since the end of June.