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UK property market could cool rapidly in 2021, say forecasters

UK property could cool sharply from six-year high, say lenders Patrick Collinson and Julia Kollewe © Provided by The Guardian Photograph: Daniel Leal-Olivas/AFP/Getty Images The UK property market could cool rapidly in 2021, according to forecasters, as the stamp duty holiday ends and unemployment rises. House prices rose to a six-year high at the end of 2020, according to Nationwide building society, rising 7.3% on the year, but the mortgage lender expected the market to slow “sharply” over the next few months. The most bullish forecast is from the property listings website Rightmove, which expects prices to rise by 4% in 2021. But researchers at Savills are expecting the market will be flat across all parts of the UK next year before accelerating again in 2022.

Property market forecast | Mortgage Introducer

Nick Barnes, head of research at Chestertons The housing market has proved remarkably resilient in the face of the COVID-related disruption and buyer demand has been sustained at a high level since May. UK residential sales in October reached their highest level since March 20161 and prices have also risen, reaching 4.7% growth across the UK in the year to September, the highest rate since October 2017. In London there has been a notable divergence between the mainstream market and the prime locations. Annual price growth across Greater London in September was 4.1%, whereas prime London prices have fallen by 2%-4%. Although the hangover from COVID-19 will be felt throughout next year and beyond, the outlook for 2021 is positive for a number of reasons.

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