Average property values expected to rise 2%
Average UK property values expected to increase by 2%, according to Jackson-Stops.
This prediction is based on the assumption that the Stamp Duty Land Tax (SDLT) holiday is not extended, added the firm.
Looking ahead, the group predict house price growth will increase by between 3-4% across 2021, should the SDLT relief be extended beyond March.
Furthermore, Jackson-Stops outlined that it expects the prime and super prime markets to continue to break away from the core housing market, gathering momentum throughout 2021.
The firm expects vendors and agents who are looking to sell properties priced at £1.5m or higher will need to price their homes competitively next year as buyers become less compromising on their property wish-list.
Turning to new builds, the group expects prices to to level off in 2021, with delays in construction timelines created by COVID-19 creating an imbalance in supply and demand.
Detached three and four bedroom new homes are expected to be the most popular next year, with buyers purchasing with a view to furnish one bedroom as a home office.
High quality developments in more rural and coastal zones will be in high demand as house hunters continue to prioritise greater access to open space and greenery.
Nick Leeming, chairman of Jackson-Stops, said: “The Stamp Duty Land Tax holiday, along with a renewed desire to move due to lifestyle changes post-lockdown, has seen thousands of buyers and sellers rush to the market, keen to beat the March 2021 deadline.
“Our sales figures between July and October show a 148% increase across our country markets.
“But we know this surge in transactions can only last so long. This tax holiday has been critical in keeping the economy moving throughout some of the toughest conditions this country has ever experienced.
“We expect to see continued momentum at the top end of the market next year. These buyers who haven’t had a pressing need to move or buy a second home have held off doing so until now.
“Whilst the pandemic has caused a shift in lifestyle aspirations for all house hunters, this end of the market will be undeterred when SDLT comes back in April.”