18th January 2021

What Does 2021 Have In Store For The Property Market?

Category: Property


Tags: 2021 predictions, property market

Andrew Dewar

Joint Senior Partner

In 44 years of estate agency I have never experienced such frenetic conditions as I have this year. Without doubt, 2020 has been the craziest year the property market has ever seen, so to put in context our predictions for 2021, you firstly need to take a look back at events over the last 12 months.

2020 started with the General Election result decided and Brexit done (or so we thought), but then Covid-19 hit and lockdown arrived. The Coronavirus pandemic made people reassess their lives and as a result many actively sought to bring their moving plans to life.

Despite the challenges presented to the property industry and considering our branches were physically closed for 3 months during the first lockdown, exceptional efforts from our team meant that we helped a record number of people achieve their dream and move home in 2020; selling £1 billion worth of property in Surrey and south west London with such intensity that we sold a property every 90 minutes throughout the year.

 

2020 In Numbers

Despite our offices being closed for 3 months during the first lockdown, data taken from the number of people we’ve helped to move home in 2020 vs 2019, really does tell the story of the crazy year it has been and the effect the pandemic has had on the Surrey property market.

  • 26% increase in the value of homes sold in 2020 compared to 2019
  • 9% increase in average sale price of properties sold by Burns & Webber and our sister company Curchods
  • 24% increase in the number of properties coming to the market with Burns & Webber and our sister company Curchods
  • 37% increase in the number of 2nd hand property sales agreed by Burns & Webber and our sister company Curchods in 2020 year on year

 

Richard Donnell, Research and Insight Director at Zoopla confirms that activity levels have increased in the property industry as a whole, commenting: “2020 has been a rollercoaster year with the pandemic unlocking a sizable amount of latent demand for housing that has pushed prices higher. However, with the ‘normal’ way of living thrown into chaos and with everyone spending more time than ever before at home, this led to a major shift in lifestyle aspirations and ultimately more people seeking larger properties with gardens and space for homeworking.”

  • Zoopla estimates that overall house sales in 2020 increased from approximately £238bn to £300bn in value
  • Buyers have saved up to £15,000 during the Stamp Duty Holiday scheme
  • National house price growth is running at a three-year high of 3.9% – the highest rate since August 2017 and up from just 1.3% in 2019
  • Asking prices rose 6.6% year on year in 2020 according to Rightmove

 

Predictions for the property market in 2021

The momentum built up in the end of year market is expected to support a seasonally strong start to 2021, with older, equity rich, long-time homeowners continuing to take a growing share of sales.

Improved availability of higher loan-to-value mortgages for those with deposits of 10% or more are already increasing, which will support first-time buyers over the next 12 months.

The Covid-19 situation remains incredibly volatile. However, assuming the vaccines are delivered and they have the desired effect, then we can look forward to an active year in the Surrey property market, with Rightmove predicting a robust 4% national average house price growth in 2021.

 

Andrew Dewar, Burns & Webber Joint Senior Partner, comments;

“There are of course the soothsayers that predict Armageddon with falling house prices, but there is still massive pent-up demand from the four years of holding back and what we have witnessed this year is only the tip of that iceberg.”

There are hardships being faced with many job losses, but this will also motivate some to move, therefore we should see an active market in 2021, Covid-19 permitting.

While the pandemic has resulted in an increase in activity within the housing market, it is not immune to economic forces and rising unemployment, so we have to watch carefully how the next few months bring for all of us.

What is absolutely vital for anyone thinking of a move as we enter the New Year, is that no matter what your motivation might be, make sure you seek solid, expert advice. Early planning and preparation and having an expert, professional estate agent to assist you throughout the entire moving process has never been more critical to ensuring your move in 2021 is a success.”

 

Lettings Market Predictions

Our sales branches witnessed first-hand the dramatic affect that the events of 2020 have had on the property market and how these have increased the number of people looking to move home. Landlords have also benefitted, with rental prices increasing by an average of 6% on new tenancies.

The basic supply and demand imbalance for good rental properties means that rents should remain stable in 2021 as Surrey offers increased desirability due to the effects of the pandemic.

Rents will not drastically increase during 2021 due to the overall economic landscape and renewal rates will remain high, but the quality of tenants and good length of tenancy will hold far more weight with landlords this year as they will want to avoid issues with rent arrears owing to the current ban on evictions as well as lengthy void periods during the pandemic.

Services that Burns & Webber offer Landlords, such as Guaranteed Rent Protection & Legal Cover are going to be more important than ever in the current climate. We are also advising Landlords to opt for our Managed Property service level to ensure they have the best advice and support throughout their tenancy.

Not only does it take just 7 days for us to get an offer for a rental property, but the value of the rent guarantee and legal cover service, in conjunction with our property management service, that Burns & Webber offer, means the level of client service has never been higher.

Whilst making predictions in the current climate is always going to be difficult, it surely has to be easier than solving 3 rubik’s cubes simultaneously whilst juggling, (yes it has been done!) so we’re confident in our appraisal of the next 12 months.

 

BOOK YOUR FREE CONSULTATION

 

 

Similar Articles

Category: Property


Tags: building work, construction, flat roof

The Art Of The Flat Roof And How To Choose The Right One For Your Home

View Full Article
13th September 2021

Category: Property


Tags: GARDEN, landscaping, outside space

Why A Garden Can Increase The Value Of Your Home By 20%

View Full Article
20th April 2021

Category: Property


Tags: boomin, Property search

BOOMIN – The smartest, most powerful property search ever!

View Full Article
12th April 2021

Category: Property


Tags: diy, HOME IMPROVEMENT, renovation

Which home improvements boost property value and which will actually lose you money?

View Full Article
19th February 2021

Category: Property


Tags: AUTUMN, CORONAVIRUS, property market

Property Market Update: Autumn 2020

View Full Article
9th November 2020

Category: Property


Tags: CORONAVIRUS, photography, property marketing

How To Get The Best Photography Of Your Home When Selling

View Full Article
14th October 2020

What Burns & Webber can do for you

No Sale, No Fee

Our cutting edge marketing package includes professional photography and floorplans to present your property at its very best. There’s nothing to pay upfront, so you won’t pay us a penny until we’ve successfully sold your property.

Maximum Exposure For Your Home

We are one of the few agents to advertise on all the UK’s leading property websites including Rightmove, Zoopla, Primelocation and OnTheMarket, so you can be confident of having your home in front of thousands of buyers.

Our People

Over the 80 years we’ve grown from a single office to be the largest independent estate agent in the south of england. Our friendly yet professional guidance and advice, will give you a smoother and more enjoyable experience of moving home.

24/7 Access to Your Sale

Our website gives you instant access to information about your property sale, including updates, contract documents and correspondence and easy access to your property listing.

Tell Us What You Are Looking For

Not every property we have for sale is listed on our website - we arrange many sales before they ever appear online, exclusively to buyers registered on our database. Registering with us will give you the best chance of finding your dream home. stats

Advice From the Experts

We have ten mortgage advisers with over 100 years experience within the industry who can advise and find the right mortgage for your needs. We can also recommend qualified surveyors, solicitors and additional services to help at every stage of your purchase.

Selling Your Existing Home

If you have a property to sell, we recommend you find a buyer for your existing property before starting your search. Early preparation is key to a successful sale - we can help you establish its market value and find you a buyer.

24/7 Access to Your Search

Our website gives you instant access to information about your property search, including shortlisted properties and once you’ve had an offer accepted, updates and all correspondence.

Licenced & Regulated

We are members of ARLA Propertymark, the UK’s foremost professional body for letting agents which means we are required to operate in a transparent way, providing services which are subject to independent scrutiny, giving you peace of mind at all times.

No Let, No Fee

Our cutting edge marketing package includes professional photography and floorplans to present your property at its very best. There’s nothing to pay upfront for this service, so you won’t pay us a penny until we’ve successfully found a tenant your property.

Your Property in Safe hands

One of our locally based in-house property managers will be personally assigned to you and your property. From finding a suitable tenant, to rent collection, maintenance, property inspections and day to day management, we take care of everything on your behalf.

24/7 Access to Your Portfolio

Our website gives you instant access to information about your property portfolio, including status updates on your letting, financial overview and statements, contract documents and easy access to your property listing.

Dedicated Local Point of Contact

Our experienced property management team based in branch, are readily available to respond to your enquiries, maintenance issues and any emergencies. We respond quickly and professionally providing guidance and advice throughout your tenancy.

Tell Us What You Are Looking For

Not every property we have to let is listed on our website - we arrange many tenancies before they ever appear online, exclusively to people registered on our database. Registering with us will give you the best chance of finding your dream home.

Licenced & Regulated

We are members of ARLA Propertymark, the UK’s foremost professional body for letting agents which means we are required to operate in a transparent way, providing services which are subject to independent scrutiny, giving you peace of mind at all times.

24/7 Access to Your Search

Our website gives you instant access to information about your rental search, including shortlisted properties and once you’ve had an offer accepted, updates on your Tenancy Application, rent payments, maintenance and all correspondence.

Buyers

Please confirm you consent to us using cookies to help with your property search and improve your experience on the Burns & Webber website.

Cookies are small text files placed on your computer/mobile device that remember your preferences and what you were searching for. Our cookies don’t collect any personal information. For more information please read our privacy policy, thank you