Nationwide has reported that in November 2020, house prices increased by 0.9% from October 2020, meaning that the yearly growth for property prices have increased by a whole 6.5%, which is the highest in the last 6 years. The housing market seems to have been fuelled by a number of reasons, these including the stamp duty holiday until the 31st of March 2021, change of priorities/jobs following lockdown and the pent up demand of lockdown itself. Even though the economy is struggling heavily currently, the property market itself has been extremely strong. Originally it was thought that the market would struggle due to the recession, however it has been far from that, with the UK national average of a property according to Nationwide being at £229,721.
Nationwide noted that through research around 30% of those who were contemplating moving, were doing so to get more outside space or be near an area whereby they are near outdoor spaces. Those properties located in national parks came with a 20% increase, meaning that these properties were around £45,000 more expensive than identical properties not in these areas. It has been reported by the bank of England that mortgage approvals for houses were the highest it has seen in thirteen years at £97,500.
As the market changed with homeowners priorities changing following lockdown, with jobs changing, more people working from home and not needing to travel into the city everyday. There is a possibility with the new vaccine being approved, could priorities change again?
READ MORE: https://www.bbc.co.uk/news/business-55143223
READ MORE: https://www.theguardian.com/money/2020/dec/01/uk-house-prices-national-parks-covid-nationwide
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