Maybe one of the most surprising developments of the past year was the strength and resilience of the UK housing market. Now that we’re starting to see a light at the end of the tunnel everyone wants to know where things are going to go from here. Of course, unprecedented times make the job of the prognosticator that much more difficult. Still, when those of us at Oaks Estate Agents look forward there are some 2021 market trends that seem a pretty safe bet.
2021 Market Trends in South London
Strong demand – Recent data indicates that the much-ballyhooed “pent up demand” that is supposed to materialise this year is doing just that. Property viewings are through the roof and offers are up nearly 30% over last year, which was an unexpectedly strong, if unspectacular, year. Greater London, including South London, is seeing a significant increase in properties coming to market, many of them to meet this outsized demand.
Rising prices and short supply – Whenever demand outstrips supply prices turn upward. That’s exactly what has kept UK home prices more or less stable even during a year of unprecedented economic upheaval. Some of that demand was driven by the Stamp Duty Land Tax holiday. But as people who were motivated by that exit the market, more traditional buyers are entering, riding a renewed sense of confidence that the worst is over. So look for prices to stay high and supply to remain relatively tight.
Longer waits to process transactions – The aforementioned Stamp Duty Land Tax holiday caused untold numbers of buyers to enter the market in the hopes they could secure their new property before the holiday deadline. As a result, conveyancers are currently facing a backlog of purchases and it seems like some time before that backlog will be cleared. So expect the entire home buying transaction to take longer in 2021 than it normally would.
Strong demand in the letting sector – While the home buying market demonstrated remarkable stability during the past year, the same cannot be said for the letting market. Many people in Greater London who lost their jobs wound up leaving the capital and their flats. Now that things are starting to loosen up in the economy we expect strong demand will return to the letting market and drive an increase in prices.
Get in Touch With Oaks
2021 is shaping up to be a year of unprecedented opportunity. Don’t miss out. Call Oaks Estate Agents on 020 3973 9700 to learn more about 2021 market trends and how to profit from them.