The year that has come and gone, 2020, has been a turbulent and challenging one across the board. However, as we look forward to the year ahead, 2021, here are our predictions on trends that will occur in the Real Estate Industry.

1. House Prices Will Slowly Rise

We predict that, though slower than previous years, house prices will on the whole rise towards the latter part of the year as the pandemic comes under control and buyers see purchasing property as a top priority. There will also be increased confidence once the vaccine is rolled out more widely.

Several factors will influence the price rise including a property supply shortage, equity-rich buyers looking to further expand their portfolios, a comfortable and expansive home being a much more important factor, pent up demand from the lockdowns and optimism as speculation grows with regards to the state of the economy improving.

2. Foreign Buyers Will Return (Not that they had Left!) 

As the dust settles after the pandemic and Brexit, we anticipate foreign buyers will climb down from the fence and return to invest in more real estate in the UK and in a big way.

With the low exchange rate and low cashflow landlords and vendors who have hung so far, know it is only a matter of time. We anticipate off-market and private deals to increase and we have seen an uprise in enquiries already and see this as a positive sign.

In turn, we predict there will be a rise in expats returning and again, we have seen an increase in the search for our Moving to London services on our website.

3. More Retail Outlets Will Close

With shoppers switching their consumption behaviour to shop online (mobile, deskptop and tablet) more, due to uncertainty with regards to lockdowns and safety concerns, we anticipate that more retail outlets will close and switch focus to e-commerce.

A positive is that the industry has an opportunity to pivot and create ‘experiential’ opportunities for customers and combine their premises with online purchasing. 

Overall, there will be a wider choice of commercial properties available to lease for entrepreneurs or those looking to expand their operations and convert some of these properties into residential or mixed use. We are here to help advise and consult on what to do. Call + 44 (0) 207 993 4081 or send an email for a fast response. 

4. New Property Developments Will Be On The Rise

We predict that property developers will construct properties that include home office spaces, high-speed Internet connections as well as shared workspaces on their sites. 

Working from home is set to continue for a longer period coupled with homeschooling and so demand for homes which offer up more space and better connectivity will increase.

5. Low Mortgage Rates 

It is very unlikely that the Bank of England will increase the base interest rate and so we anticipate that mortgage rates will continue to stay as is, making it an attractive time to purchase property. Even with the stamp duty holiday set to end, investors will likely take advantage of these competitive rates.

We hope you will find these predictions useful and may the New Year be a fresh, new start to greater expectations. 

Next Steps … 
If you are worried about any aspect of your property transaction or process in 2021, please feel free and get in touch with us. We will be happy to listen and advise and consult you on the best course of action, as one of London’s leading bespoke property consultants and brokerage firms.