There is some good news for the property industry and homeowners across the UK. Leading property agency Savills has reported that the housing market is on an upward trend, contrary to the industry's initially bleak outlook for 2021. However, the Covid-19 vaccination rollout's success and the roadmap to exit lockdown have both had a positive impact and helped to trigger house price growth.
Savills went on to say that property prices in Yorkshire and across the northwest could see significant increases over the next five years. Data and predictions from Savills suggest prices in these areas could increase by nearly 30%, more than twice as much as they are projected to in London.
Outlook is much brighter for the property market
Savills senior researcher Lucian Cook said the property market's outlook has been improving since the start of this year. Cook credited this to the success of the vaccination programme, among other things.
Cook said predictions for the market had not been great at the end of last year, but added, "The outlook has improved since the beginning of the year given the speed of the vaccination programme, the expected relaxation of social distancing measures and government support for both jobs and the housing market.”
What are the predictions?
Savills says property prices across the nation are expected to increase by 4% this year. Before the end of 2025, they are projected to rise by 21.1%. If these predictions are correct, the UK's average house price would increase to £279,644 by this time.
The northwest of the country is set to see the most significant increases, far outpacing the nation's capital. Property prices across the northwest could rise by close to 29%, which would bring the average property price in the area to £227,879. In Yorkshire and Humberside, the increase is predicted to be 28.2%, with average house prices rising to £220,921.
Predicted increases in these areas are set to be significantly higher than in London. According to Savills, prices in the capital could increase by 12.6% over the next five years, taking the average property price to £547,868.
The number of property transactions is expected to increase significantly this year compared to last. In 2020, the UK saw one million property transactions take place. However, in 2021, this figure is expected to rise to 1.4 million. Next year, property transactions are predicted to decrease slightly to 1.25 million.
According to Savills, low interest rates, an extension to the stamp duty holiday, and increased capacity for growth are all contributory factors for the upturn in the property market.