Take an in-depth look at how the UK property market was affected by Covid-19 in 2020.

2020 was a rollercoaster for many businesses and industries; and, by taking an in-depth look at what happened to the UK property market in 2020 will help us understand what may await us in 2021.

Keeping informed about the UK property market can benefit property developers and investors who are hoping to buy and sell at the right times. One wrong purchase can leave you breaking even or facing worse consequences. Therefore, it’s best to keep an eye on the market at all times, especially during the COVID-19 pandemic.

Looking back at 2020 through this quick guide, you can see what happened to the housing market, and the implications it might have for 2021.

What was the number one search term used by home hunters in 2020? 

‘Garden’ was the number one search in 2020, giving some indication of what homeowners are looking for recently. This could be attributed to the fact people are forced to spend a lot of time at home and want their own private retreat. Discover what the other top nine searches were here.

How much did rent raise in 2020?

On average, rents rose by 1.7% across England in the 12 months to September 2020. However, in London, they fell by 5%. Want to know more about why prices are different inside and outside the capital? Then take a read of this.

What was the rate of house price growth?

In 2020 higher buyer demand levels and a shortage of homes for sale pushed the annual house price growth up to a three-year high at 3.9%. This growth rose the average value of a home to £222,900 over the year.

How long was the property market closed in 2020?

The UK property market was closed for six weeks following the lockdown in March. It was even estimated in mid-May 2020 that upwards of 373,000 property sales had been put on hold during this lockdown, which had a total value of over £82 billion. 

What was the quickest time for a house to sell?

In the fastest-moving housing market in the UK, on average, it takes 20 days for a house to sell. Zoopla research also identified 19 other locations where properties sell within 30 days. Take a look at the full list here.

How much has property value increased per day?

In 2020, the average UK property increased by £27.81 in value per day. This is a considerable increase from 2019, where it was at only £8.64. 

How long did it take to complete a house sale?

From an accepted offer on a home to the completion of a sale, it took on average 100 days in 2020. 

How much has the value of properties increased in 2020?

Despite the pandemic, UK properties have climbed in value in the past year. Average housing values increased across the whole of the UK, with an average increase of £10,177.

How much could I have saved on stamp duty land tax?

Because of the Covid-19 pandemic, Chancellor Rishi Sunak announced a stamp duty holiday in July 2020. If you tried to benefit from this, you could have saved an average amount of £15,000. If you still want to make this saving, there’s still time in 2021 – but be quick!

What does 2021 look like?

Looking back at 2020, we can make some predictions on what 2021 holds for the UK property market. The annual house price growth will likely continue to rise to 5% by February, before slowing back down to 1% by the end of the year. This is because we expect demand for housing to fade during the second half of 2021. However, all in all, we expect the number of completed transactions in 2021 to be similar to 2020 at around 1.1 million.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>