The pandemic impacted the UK housing market in 2020, but unlike what was expected with a dramatic slowdown, the market proved to be resilient. The lockdowns and need to spend more time at home made individuals and families reevaluate their dwellings. The home now had to be more than a place to contain our belongings and sleep. It became where we worked, our children studied, it became our gym, our place to worship and meditate, and where we sought entertainment through online streaming of films and game nights. For many, the new need meant finding a different place that could make all of that more possible and comfortable and as a result the housing market became busy.

Hopeful first time home buyers took advantage of the low interest rates set by the Bank of England’s Monetary Policy Committee (MPC) which were at the lowest rate in the Bank’s 300 plus years history at 0.1%. 

There was also another incentive for first time buyers with a stamp duty holiday that offered savings to put a buyer into a higher valued property.

Even homeowners took advantage of the incentives in place within the housing market and lending market and sought for themselves a better dwelling for their pandemic lifestyle.

The housing market grew to reach a four year high in November according to the official data released by the Office for National Statistics. The average UK house price increased by 7.6% in the twelve months to November 2020. This was up from the 5.9% in October. The increase put the UK house price at £250,000 and the London house price passed the £500,000 average for the first time.

The market is expected to see less growth in 2021, especially if the stamp duty holiday due to expire the end of March is allowed to lapse.