Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
What’s happening in the UK Property Market?
Annual house price growth hit record highs in the final month of 2020. It reached a six year high of 7.3% in December, up 0.8% from 6.5% in November. The average house price in December was £230,920, up once again from the prior month’s £229,721.
Despite the pandemic, house prices at the end of 2020 were 5.3% above March’s level before the coronavirus hit the country.
The last quarter summary
Annual house price growth increased in all regions of the country in the last quarter of the year, with all regions in England seeing prices rise over the year, ranging from 5% to 9%. October also saw the highest level of mortgages approved for house purchases, almost 50% above the monthly average of 2019. And by the end of the month, the total number of mortgages approved in 2020 was only 7% less than the same period in 2019.
The performance toward the end of the year is something that could not have been predicted at the start of the pandemic. At the height of lockdown and social distancing measures, housing activity slowed down and the wider economy shrank by 26%. But ever since then, housing market activity has slowly crawled back up thanks to policy measures and people’s desires to upgrade their space after being stuck indoors for months. It seems homebuyers are drifting towards less densely populated areas and detached properties rather than flats in the latter months of 2020.
Government schemes have helped momentum
Government schemes like the furlough and Self Employment Income Support schemes have supported the labour market. Measures instituted helped to keep borrowing costs down and the SDLT holiday encouraged buyers to take advantage of low rates and make moves sooner rather than later. Additionally, mortgage payment holidays let people have some breathing room with their repayments.
Looking ahead
With lockdown 3.0 just announced, there is continued uncertainty about the UK’s economic future as the pandemic remains the top concern for the public.
Experts hope the behavioural shifts homebuyers experienced last year continue into 2021, but expect activity to slow down slightly as the stamp duty holiday deadline in March approaches.
Check back next month
There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index December 2020.
Mortgages for Doctors and Dentists
Always remember to visit our site monthly for your regular update on the nation’s property prices.
If you’re planning to buy or sell property this year contact an advisor for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.