Britain’s pandemic property market boom is set to roll on as government support for the roaring market continues says a poll by news agency Reuters.
House prices rose at the fastest annual rate in nearly 14 years in March, official data showed on Thursday, after a tax cut and a mortgage guarantee scheme for first-time buyers further stoked a sharp surge in activity.
Prices will rise 5.0% this year, the May 11-21 poll of 21 property market experts found, a sharp increase from a February poll which predicted they would flatline. Next year and in 2023 they will rise 3.0%.
“The aftermath of the pandemic is likely to see sustained housing market strength into 2022, as a result of changed lifestyles, a desire for a fresh start, and tens of billions of ‘accidental savings’ made during the pandemic, much of which is likely to find its way into the housing market,” said Mike Scott at online estate agent Yopa.
When asked how the risks to their forecasts were skewed, 11 of 14 said they were more to the downside. A slim majority – eight of 14 – said activity was more likely to slow down than accelerate in the coming year.
“This year’s momentum will continue as the economy recovers very strongly. It’s 2022 we need to be concerned about,” said Russell Quirk at estate agent Keller Williams.
Prices in London, long the hotbed for foreign investment, were expected to lag the national market and rise 3.0% this year. Next year they will increase 2.5% and then by 3.0% in 2023.
