Thursday, 21 January 2021

Housebuilding in 2021

While 2020 came with a lot of change due to the covid-19 pandemic, most people are feeling a little more hopeful in 2021. The pandemic forced several changes in the lifestyles and livelihoods of millions of people. News regarding the EU trading relationship was not clear.

On Christmas Eve, the government stated that a free trade deal was established with the EU.  This gave the New Year 2021 a brim of hope in business revival and a reassurance that things would be alright.

While this is the case for regular businesses, the housing market and the housebuilding field still remains uncertain what is in store for them in the New Year.

With changes come several adaptation problems. But still, there is cause for feeling positive about the year, as the challenges for the New Year are still untold.

Let’s take a look at some of the things that will be changing for the housing market in 2021.

Certainty after Lockdown

The real estate and housing market is usually very volatile. It is, almost every year, characterised by unpredictability and uncertainty as it hugely relies on other markets. Coming to the end of 2020, the second lockdown came to an end, which paved the way for an increase in pent-up demand. According to reputable sites such as
Property Price Advice, the number of valuation requests increased to over 70%, which was a good sign. The housing market was making a great comeback after the lockdown.

Increased Market Confidence

Usually, the confidence in any market determines the kind of business decisions that housebuilders can make. These fields include planning for the construction of pipelines, determining the rates, valuation, and anticipated build-out rates.

The Impact of Brexit

Even better, Brexit had a positive impact on the
housebuilding industry as it enhanced the market's certainty and stability. It became a regulator for the covid-19 pandemic and people began investing once more. Following these changes, 2021 seems to be a good year for housebuilders as the path is set.

Critical Issues at Hand

Stamp Duty Holiday and Mortgage Holiday Scheme

Since the Brexit debate is out of the question, the next issue is the March 31st deadline. When the month of March ends, housebuilders face the end of the stamp duty holiday and the mortgage holiday scheme. These two initiatives come about during the covid-19 pandemic and have had an impact on the housing market. According to reputable sources, most house hunters have put their money pending until the end of March.

Testing Q2

Most forecasters and industry specialists predict that a testing Q2. Following the end of the furlough scheme that is most likely to occur as January comes to an end. Property experts expect the miniboom end to manifest in February.

3 Reasons to Be Positive

Besides these critical issues at hand, there are still many reasons to be positive. Let’s explore them.

1. House-Hunters Saved Money during the Pandemic

Looking back at the first lockdown of 2020, there came about the accidental saver concept. When the
government imposed restrictions on the housing market, house-hunters had fewer chances to spend and more to save. As such, most people saved and expect to make purchases after the lockdown. This has already been seen in the post-lockdown period that experienced a boom in the sales.

2. Better Mortgage Options for House-Hunters

Since the government has imposed more friendly and favourable lending conditions and terms, more people are expected to take advantage of this and purchase properties. The low deposit mortgage options and interest rates create a suitable welcome back for house owners.

3. The Government Initiatives to Boost the Housing Market

Even better, the government has several initiatives to bolster the housebuilding industry. The Home Building Fund will give 4.5bn to support the industry, especially in building new homes.

Contact Us for More

With our experience in the real estate and housing industry, we can create over 45, 000 leads for your business and boost your sales. Even better, our charges are friendly and factor a cost-per-lead payment plan so that you feel adequately catered to.

Regardless of the size of your industry, we are here for you. Get in touch with us today and scale in 2021.


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