House prices ‘will bounce back’ in 2021 with cities continuing to thrive, claims expert

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House prices have remained largely buoyant this year despite the coronavirus pandemic halting the property market earlier this year. One expert described the property market as being “covid crippled” earlier this year. The stamp duty holiday, which was introduced in July by the government, has helped to encourage people to buy.

The SDLT holiday is due to end on March 31, which lead to a shift in property demand.

Harry Fenner, CEO of Navana Property Group exclusively told how the real estate market is facing a more “uncertain environment”.

He added: “Of course, nothing is clear cut, especially as there is no blueprint for the current situation we now face – every sub-sector of property is facing its own unique challenges.”

Mr Fenner said that during the tail-end of this year, the property market has managed to “bounce back”.

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He added that the coronavirus vaccine is likely to see an “uptick” in property listings as more people become comfortable with the idea of moving house.

He added: “What’s more, interest rates are set to remain low and the banks are still keen to lend, whilst the stamp duty holiday will continue to motivate buyers until the spring.”

The property expert explained that even the “main cities”, which have largely seen people leave them in favour of countryside homes, will “continue to thrive”.

“Even during the midst of lockdown, we saw some of the highest real estate prices paid for prime London stock,” he explained further.

“It’s true this year has seen a rise in flexible working and increased desires for green space, but there will always be an appetite for city living.

“The recent u-turn from the Government to help stimulate the urban residential sector and with planning emphasis on 20 cities across the country will help to satisfy this demand.

“Going forward, developers need to think more carefully about how properties are built – externals as well as internals, should AC be the norm in new apartments, is outside space a must?

“These are all questions which should be considered.”

Mr Fenner said Navana Property Group will be focussing on commercial and Build to Rent sectors next year.

The Build to Rent sector has been resilient and has “continued optimism” surrounding it.

He explained the sector offers huge opportunities for developers and builders.

“It’s a trend which certainly isn’t going to go away anytime soon, even in the post-pandemic world,” he added.

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