UK house prices – are they falling or rising?

October 23, 2020

To say that 2020 has been a tumultuous year would be something of an understatement. The UK economy has felt the impact of the COVID-19 pandemic at almost every level. On the housing front, projections were dire. Savills predicted a 7.5% drop in values across the UK and many other forecasters were even more pessimistic. 

But the crash never came. Savills is now projecting a 4.0% increase in nationwide house prices in 2020. So, what changed?

“While the financial impact of COVID-19 has been felt across a range of sectors and we can see unemployment in the UK rising as a result, there have been some interesting dynamics in the housing market. The pandemic has led to both policy and mindset changes that are actually fuelling market growth, rather than delivering the anticipated crash.”

Dale Anderson, Managing Director, Fabrik Invest

The main policy change has been the introduction of a Stamp Duty holiday. Chancellor Rishi Sunak introduced the temporary relief period on 8 July 2020. It will run until 31 March 2021, allowing property buyers to save as much as £15,000 in fees. This has served as sufficient incentive to many owner occupiers and investors to help keep the market buoyant. 

Not only that, but the pandemic has also caused a significant change in the way that people view their homes. Suddenly spending vastly more time at home – and in many cases working from there as well – has pushed many families to seek more space, both indoor and out. 

All of this has meant that house prices, which were predicted to drop so dramatically, rose by an average of 2.6% in the year to August 2020. In the North West and Yorkshire and the Humber regions of England, that growth stood at 3.3%. 

That’s not to say that the financial impact on the housing market hasn’t been felt at some levels. Hometrack predicts a decrease in the share of home purchases by first time buyers in 2021, as tougher lending requirements are felt by that demographic. Instead, it is existing homeowners who are fuelling the market right now.

“A decrease in first time buyers means a corresponding increase in those living in the private rented sector. That’s good news for investors looking to serve this market, particularly when they can also look forward to solid capital growth over the course of their investment.”

Dale Anderson, Managing Director, Fabrik Invest

Investors seeking to capitalise on price growth in Yorkshire and the Humber would do well to consider the apartments at Icona. Due for completion in January 2021, the homes will allow investors to start earning income in just three months’ time. Prices start from £245,000 for the spacious, light-filled homes. The 32 apartments (including three penthouses with private terraces) come with a large communal roof terrace located within sight of York Minster. 

To find out more, why not get in touch with the Fabrik Invest team? You can call 020 8175 9891, email enquiries@fabrikpropertygroup.com or visit www.fabrikinvest.com

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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