Skip navigation

Gloucestershire Business News

Rightmove predicts modest rise in house prices for 2021

Property website Rightmove forecast house prices would rise by four per cent next year, maintaining momentum despite the looming end of a tax break and forecasts of rising unemployment.

Rightmove said asking prices for property first advertised between 8th November and 5th December were 6.6 per cent higher than a year earlier - a rate of growth it said was unsustainable - and up from a 6.3 per cent annual increase the month before, as reported by Reuters.

Britain's housing market unexpectedly boomed after the initial end of Covid lockdown restrictions in June, as people looked for bigger houses better suited to working from home, and to take advantage of a temporary reduction in stamp duty.

The tax break is due to expire at the end of March, but Rightmove said underlying demand and cheap borrowing costs meant this was unlikely to lead to much slowdown in activity.

It said that while there may be a lull when the stamp duty holiday comes to an end, the change is unlikely to be make or break for many buyers, although it may lead to some reduction in the size of offers.

The Bank of England reported that lenders approved the most new mortgages since 2007 in October, and mortgage lender Halifax said house prices had risen by the most since 2004 in the five months since the first lockdown ended.

While the Bank of England forecasts Britain's economy will steadily recover from the pandemic in 2021, it predicts unemployment has yet to peak - with almost a million more people set to lose their jobs by June, plus extra potential damage if Britain and the EU fail to reach a trade deal.

Related Articles

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Thursday, January 28 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Thursday, January 28

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

Two cannabis grows found in the Forest of Dean Image

Two cannabis grows found in the Forest of Dean

Police have seized more than 200 cannabis plants along with drug-related equipment from properties.

Newmedica invests more than £1m in new Gloucester site Image

Newmedica invests more than £1m in new Gloucester site

Sight-saving specialists Newmedica have revealed a £1million investment in the new state-of-the-art facilities.

Investment firm makes splash with strong performance Image

Investment firm makes splash with strong performance

Investment management company Brewin Dolphin has seen its total funds top pre-pandemic levels after a strong performance in the last quarter.

Copyright 2021 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.