Most predictions for 2021 are indicating that the demand for property in all forms will be high, for both sales and rentals. With the renewed movement of renters and families bolstering demand prices are going up. As home sales prices look set to increase throughout the year, so too do rental rates.
Even with the predicted crash spurred on by the Covid-19 crisis, the housing market has managed to remain healthy. While late 2020 marked a slowdown in the number of home sales, buyer sentiment remained strong into 2021 and home pieces are still rising 10% year over year according to Which? Magazine.
If you are in the market to sell your home, now might be the best time to sell, even with May 2021 hitting a new national record for the price of property coming to the market, demand is still high. In addition sales prices have increased to some of the highest levels ever and new buyers will be expected to pay more for property. For sellers, this is great news, and for buyers, the high prices and high demand is being offset by low interest rates, the reintroduction of 5% deposit mortgages and the zero stamp duty being offered until the end of June 2021. In simple terms, house prices are high but buyers are willing to pay more.
Those considering selling their home can take full advantage of
the market depending on their property size and location. There are some other
factors to consider, homes that have larger sized rooms or dedicated workspace
are in higher demand. So too are homes with balconies, terraces, and gardens. People have increasingly used their home for
leisure during the pandemic. As home working has been much in evidence during
Covid19, families are seeking larger style homes with room to accommodate
everyone, something that was not a primary consideration when everyone was
leaving to head to the office. This means that homes in more suburban or rural
locations are seeing more activity as they tend to be larger and built on
Rightmove is predicting a 4% national average price growth for 2021, indicating a strong market for the rest of the year.
Interestingly in this post -Covid market, more property is currently being purchased than ever before for rental purposes. More new landlords are entering the rental market than in previous years. The availability of low-interest mortgages and the recent government reduction of stamp duty has enticed many into buying property as an investment and new landlords are taking advantage of the current incentives.
For rental growth, the biggest gains have been seen in the
southwest and southeast areas of the country, quickly followed by northern
regions where properties are frequently more affordable. Areas of major cities
such as Central London have seen a decrease in property rental, but the
outskirts of the city are reporting a notable rise. Other rural or suburban
areas are also experiencing the same phenomena, good news for landlords owning
properties in these areas.
Due to the rise of home working during the pandemic, there has
been a shift in the type of rental property being sought. Families are
realising the need for more space as more of their home is spent at home or
parts of the house are dedicated to professional use. This desire for more room
is driving a large percentage of renters out of the cities to more remote
locations where they can get more property for their money.
While rental dynamics have certainly changed, it may only be
for a temporary period. As life returns to normal with restaurants, pubs, and
shops re-opening, it is possible that potential renters requirements may go
back to their original pre-pandemic state. Meaning that the movement out to
more remote areas could only be a short-term response.
Renting a property allows for freedom of movement and flexibility which can be appealing to new families and young professionals that wish to remain open to relocation options. Even with rents rising, the need for rental property is still expected to remain strong throughout 2021.