Bespoke Estate Group Predictions – Looking to 2021

January 27, 2021

2020 was a year unlike any other we have seen for a long time, and the year ahead is uncertain with the coronavirus pandemic and Brexit. However, experts are still predicting 2021 to be a strong year for the UK property market, with some even predicting between a 2-4% growth.

The coronavirus pandemic, Brexit and the economy will continue to impact the property market. However, the sector has recently shown resilience during periods of uncertainty. With the introduction of the vaccine and a plan to roll this out rapidly to stop the spread of coronavirus, the UK have finally stepped up their game, but these things will still continue to affect the property market.

London has proved itself to be the epicentre of the virus, and with that has seen a mass exodus of people moving both their households and businesses away from the capital. That said, it would be reasonable to assume that London will end up one of the lower performing cities in the property market in 2021.

During the last half of 2020, we saw a property boom. This is expected to continue into 2021. The first quarter will be busy with people hurrying to buy homes to take advantage of a temporary stamp duty holiday on purchases that ends in March. Cheap mortgage rates will attract first-time buyers and fuel activity, Rightmove predict.

With such positivity happening in the property market right now, we can’t help but wonder if the government will either extend the stamp duty holiday or offer another solution beneficial to buyers when the current offer ends in April. For those who have been fortunate enough to have kept their jobs through the past year, they generally are in a better position than they were a year ago, and are raring to spend their money.

It’s expected that there will be another round of quantitive easing which will have an impact on house prices – how does it do so? Quantitive Easing flows into assets like the stock market and the property market meaning that it will push the price of property up, and lower the cost on borrowing.

Bespoke Estate Group’s strategy moving into 2021, is much the same as how we ended 2020 – focussed on commercial property. We’re seeing many commercial building’s come up at auction where businesses have had to close due to effects of COVID-19, and we’re seizing these opportunities to turn them into residential units.

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