The Budget Is Opening Doors

The latest Budget has set out the road beyond the pandemic against an improving UK economic picture, reports Abode2 luxury property magazine. It did so without introducing any significant speed bumps for the UK housing sector, which should continue its journey back to normality in the coming months, with the frenzy of the stamp duty holiday fading in the rear-view mirror. After what is set to be a record year for UK property transactions, supply should gradually improve in the coming months as sellers capitalise on the market’s current strength, and incremental interest rate rises help to moderate the high demand that has persisted since the market reopened. We expect house price growth to finish 2021 in the single digit range, as the property market returns to more seasonal patterns.

The government’s confirmation of a £1.8bn brownfield fund will also help alleviate some of the impact of the pandemic on new homes output. As ever, the devil will be in the detail. There are questions marks over how quickly this can be rolled out and which areas it will target to help ease housing shortages.