Business & Investment

Halifax: House prices hit record highs in December, but boom slows

Home prices will rise until the end of 2020 to a record £ 253,374 in December, with homebuyers aiming to return to London following last year’s escape.

According to Halifax, home prices rose 6% last year and average home prices in 2020 increased by £ 14,295 due to a mini-boom that arrived after the property froze at the start of the blockade.

Realtors predict that sales in London will skyrocket in the wake of the outflow of city workers who fled rural and coastal homes last year.

Realtor Dexter expects London sales and rental volume to double in 2021 to make Camden, Kentish Town, Tufnell Park, Kensington & Chelsea Autonomous Regions “Star Performers” this year. Said that.

Rightmove, meanwhile, has recorded a record number of views this week, marking the beginning of the busiest New Year to date.

According to the company, the number of people contacting realtors about real estate to buy has increased by 11% since early 2020, and the number of people inquiring about real estate to rent has increased by 22%.

Located in Abbots Oak, Leicestershire, this four-bed house is listed on Rightmove for £ 1.65 million.

Rightmove has a two-bed apartment for £ 450,000 in this historic building in Bath.

Rightmove has a two-bed apartment for £ 450,000 in this historic building in Bath.

Located in Long Melford, Suffolk, this four-bed single-family home is listed on Zoopla for £ 550,000.

Located in Long Melford, Suffolk, this four-bed single-family home is listed on Zoopla for £ 550,000.

This 3-bed detached house in Oswestry, Shropshire costs £ 250,000 at Zoopla.

This 3-bed detached house in Oswestry, Shropshire costs £ 250,000 at Zoopla.

The busiest year ever begins as home hunters want a New Year’s move

Rightmove marks the beginning of the busiest New Year to date, with site visits increasing by 30% over the same period in 2020.

The number of people inquiring about real estate agents about properties to buy has increased by 11% since the beginning of 2020, and the number of people inquiring about properties to rent has increased by 22%.

The imminent end of the stamp duty holiday, more people reassessing where they live, and all that the housing market remains open, will make Rightmove record the beginning of the busiest New Year ever. Contributed.

Rightmove said it saw record viewing this week, despite the new blockade.

“We give hope to those who already own it, or who plan to bring their property to market and sell or rent it in early 2021”, the real estate giant said.

Tim Banister, Director of Real Estate Data at Rightmove, said: ‘January is usually one of the busiest months of the year as people start planning their New Year’s relocation, as it did after the elections earlier last year. A bounce that gave hope for a vibrant spring market, before that everything changed with a temporary closure from March to May.

“I didn’t know how this year would start with a lot of changes and uncertainties about limits, but I hope the demand I’ve seen so far is the highest I’ve ever seen, or I need to move. I’m relieved for some people. January. ”

Dexters currently has more than 100,000 registrants looking for a home in London. Also, once overseas travel resumes, we will receive thousands of inquiries from overseas buyers trying to snap properties in the capital.

According to realtors, buyers come from Hong Kong and Saudi Arabia and want to buy “bolthole” homes “due to concerns about their political and economic stability.”

Realtor Yopa told MailOnline that 24.1% of January 2020 viewing requests were for real estate in London and plummeted. As the pandemic took hold, it was 17.6% in April and May.

It fell to 16.3% in June. This was when we first discussed the possibility of escaping the city, as working from home has become commonplace and many no longer have to live near the office.

Home viewing requests in London rose to 22% in September, increased to 24.2% in October, 25.5% in November, and reached 22% at the end of the year.

Veteran real estate agent Russell Kirk told MailOnline that demand from London buyers is already gaining momentum again, according to data from Rightmove and Zoopla.

Quirk added: ‘I’m sure homeowners and buyers will return to the capital. Transactions in London fell dramatically in 2020, but demand from inquirers via the portal is beginning to return.

“I think there is some data showing that there was a small escape, with some realtors reporting that more people are moving than in London. But in those reports Some must simply be said to be self-serving for the enterprise.

“There was certainly a feeling of homeowners that they didn’t have to be in the city and near their desks because they worked from home. This is a somewhat strong feeling for the upcoming city workers. I’m sure it will continue to exist, but the change in thinking is only temporary.

“I’m also aside, we are social creatures in nature, so I think we generally get back to the desire to return to the office. Hopefully the city center will be rejuvenated. The move to live in the wilderness of the countryside and use dangerous broadband will soon subside.

“Some say that Covid will change our way of doing things and our habits, but looking back a few years later, it was just a moment in history.

“I firmly believe that homeowners and buyers will return to the capital. We also need to check the data. There is soft data showing that people are only browsing homes in the wilderness. In fact It is hard data that shows the transaction of.

Halifax reports house prices rising 6% across 2020

Halifax reports house prices rising 6% across 2020

However, December’s monthly growth fell to 0.2%, according to the Home Price Index of the UK’s largest mortgage lender. This effectively means that average home prices have risen by just £ 131.

It was the sixth straight month of record highs, but this month’s month-on-month growth has fallen sharply from 1% in November, suggesting that the market is chilling.

Last year, home prices rose extraordinarily as the market recovered significantly after the March blockade.

This is Money’s index analysis for the year to November, showing that average home prices across all major reports rose 6%, or £ 15,000.

All regions of England, with the exception of the northeast, exceeded their pre-recession peak in 2007.

Halifax predicted that house prices would fall by 2% to 5% by the end of 2021, but admits that the uncertainty in this year’s forecast was much higher than usual.

The increase in 2020 was fueled by the introduction of a stamp duty holiday by Prime Minister Rishi Sunak in July, which was added to the already booming market, which will end on March 31 unless the government exists. is. Choose to extend it..

Halifax also said that the impact of the pandemic on people’s finances was delayed by government support, but unemployment will rise over the years.

Russell Gary, Managing Director of Halifax, said: It is expected to rise.

House prices rose in December 2020, but only £ 131 rose as growth began to slow.

House prices rose in December 2020, but only £ 131 rose as growth began to slow.

“Stamp duty holidays also expire in March, and demand is declining, which could slow housing market activity.

“If all of this is taken into account, it is unlikely that house prices will continue to rise after the summer,” he said.

Prices are likely to fall, but the galley says it could end 2021 in the same place it started before the pandemic.

“Given the current economic and political environment, forecast uncertainty is much higher than usual, but prices are expected to fall by 2% to 5%,” he said.

“It is also important to note that such a decline only partially reverses the nearly £ 18,000 (7.6%) rise in average prices experienced over the last 12 months.”

Nick Barnes, head of research for real estate agent Chestertons, predicted a slight 1.5% drop in home prices in 2021.

“Housing for sale in 2020 increased by 4% year-on-year, compared to more than 40% more buyers. In London, the Chestertons trading pipeline at the end of 2020 was 53% higher than it was a year ago. Buyer inquiries were 49% higher. “

“The hangover from Covid-19 has been felt throughout 2021 and the outlook for the 2021 housing market is bright, despite the uncertainty after the UK leaves the EU.”

Anthony Codling of real estate data platform Twindig said:

“In 2021, will the first half of 2020 be strong and the second half calm, as the stamp duty holidays are over and the possibility of raising capital gains taxes on housing transactions will take away the heat of the housing market? , Will the tax cure Covid, heal our economy and keep the fight against the UK housing market? I know the time, but for now it’s up. “

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Halifax: House prices hit record highs in December, but boom slows

https://www.dailymail.co.uk/news/article-9125769/Halifax-House-prices-hit-record-high-December-boom-slows.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Halifax: House prices hit record highs in December, but boom slows

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