Maddyness

Are we moving towards a housing crisis in 2021?

Comments
Share :
Up
Previous part
1 —
Next part
Down
Maddyness
Up
Menu
Part 1
Down
Business

Are we moving towards a housing crisis in 2021?

Credits: Unsplash © Toa Heftiba
57 - trending  |  
Comments
By Maddyness - 16 October 2020 / 07H00 - Updated 13 October 2020

The UK’s housing market has boomed in recent months, with mortgage approvals rising from 66,000 in July to 84,500 in August 2020 - the highest jump since October 2007.

With a lot of property transactions on hold during the COVID-19 lockdown, changing lifestyles and a stamp duty cut by the government have seen mortgage borrowing and house purchases at record levels.

House prices rose 5% in September 2020, compared to the previous month in 2019, to an average home value of £226,219 in the UK.

This surge in interest and deal flow has seen a trickle down effect to employment in the construction, estate agent, property finance and mortgage brokering industries – and this has been welcomed by workers in this sector who have faced uncertainty surrounding their employment in recent months.

However, with the stamp duty cut set to end in March 2021, homeowners and applicants will no longer be able to enjoy the current charge of 0% on any properties under £500,000. There may be other economic implications in 2021 – e.g. COVID-19 affecting employment and income and a greater demand for properties outside the centre of London. If the UK sees an increase in unemployment and a dramatic change in house prices over the next year, we could be heading for a housing crisis in 2021.

Sam Howard of Magnet Capital commented: “Whilst the UK continues to suffer from the COVID-19 outbreak and arguably until we have vaccine, life will not return to the normal, there is a real sense that people want to get on with their lives. The fatigue of the Brexit years plus the seismic shock of the pandemic has taken its toll, but SME developers are seeing beyond this and thinking 15 to 18 months into the future. We are not biting off more than we can chew and maintaining good relationships with our brokers, partners and borrowers is key for us.”

Dan Kettle of Octagon Capital added: “The last few months have been great for people working in any aspect of property. As a finance company, we had zero deal flow from March to May, but then a surge in July, August and September which has turned it from a being a dismal year to one that is very busy and has a lot of potential.”

“Whilst we are all eager to do business and get things moving after lockdown, we have to think of the potential repercussions of too much lending and possible changes in employment and household income. We have lived through a recession before and we want to be cautious going into another one.”

By

Maddyness

16 October 2020 / 07H00
Updated 13 October 2020
Business
Menu
Entrepreneurs
Menu
Finance
Menu
Innovation
Menu
Technology
Menu
Agenda
Calendar
MaddyEvent
MaddyEvent
MaddyStudio
MaddyStudio
Search
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Most viewed articles
Newsletter
About
Legal Information
Search
Our services
Categories
Maddynews
Hmm ... There's a problem :(
Maddyness

Comme vous le savez, Maddyness est à la pointe de l'innovation.
Malheureusement il semble que votre navigateur ne le soit pas encore...

Pour une bonne expérience de navigation
(et être au top de la modernité) pensez à passer sur :
Chrome
Chrome
Safari
Safari
Firefox
Firefox
Edge
Edge