2020 has been an unprecedented year for the housing market for a lot of reasons. From natural disasters to a global pandemic – the housing sector has been impacted by a lot of different factors this year.
Here, we’ll look at how the housing market has been impacted in 2020 and some of the key trends that have emerged.
Rural properties have become more popular
Due to the ongoing pandemic, there has been a rise in demand for more rural properties. Homeowners in London for example, are starting to move further afield, choosing to commute into the city instead of living there. Great deals can be found on routes such as from Bedford to St Albans City and further into the London
Living further out of the city is considered safer due to recent social distancing measures. It is also much cheaper – something many homeowners need to factor in due to the economic impact of Covid-19.
The stamp duty cut
In a bid to protect the property market, the chancellor announced cuts to stamp duty in 2020. Until April 2021, buyers won’t have to pay stamp duty on properties up to £500,000.
This has caused a rush in demand, as buyers look to take advantage of the cuts before they end next year. The more expensive the property, the more buyers can potentially save. While house prices are reducing because people are rushing to sell while the stamp duty cut is still in force, moving property chains can be a significant factor in economic stimulation, so the government will be following the housing market closely.
Recession likely to damage market
The UK is officially in recession and this is likely to damage the market in the long term. Around the start of the first lockdown in May 2020, house prices across the UK dropped by 1.7%. This is said to be the largest decline in the market for 11 years.
While it is thought that the market will pick up once the lockdowns end, it could still take years to get it back to where it was before the pandemic. This is due to a huge rise in unemployment and the forced closure of many businesses. At the moment, we are yet to see the full effects this year has had on the market so there is some level of uncertainty.
These are just some of the ways the housing market has been impacted in 2020. The country still has to deal with the result of Brexit, although experts suggest this won’t have a major impact on the market. It is too early to tell exactly how hard the property market will be hit by the pandemic. However, at the moment the elimination of stamp duty has helped to keep it active.