As the new year begins Paul Cooney, Director of Horton and Garton Chiswick, has considered the outlook for the Chiswick property market in 2021 and shares his thoughts.
With over 11 years working in Chiswick and West London, Paul has sold hundreds of properties in the area and has weathered many a political and economic storm during his time working as an estate agent.
Based on historical trends and the appetite seen in the property market in recent months, Paul is able to share insight useful to those who are considering buying or selling in W4 in 2021.
Review of 2020
First, as a basis for any forecasts, a brief look at the events of 2020 and how the year concluded.
Following a decisive election result the Conservative party took the reins at the end of 2019 and the property market responded strongly at the beginning of 2020 with what was dubbed the ‘Boris Bounce’; property prices began to rise and the number of transactions increased.
The momentum of the market was abruptly halted by the coronavirus as the UK was placed into a national lockdown and the property market effectively closed for business for many weeks. Though some transactions were able to continue, for those that had already been agreed activity was paused.
Upon reopening in mid-May 2020, the property market generally picked up where it left off as pent-up demand increased the activity in the market. This busyness in the market propelled even further by the announcement of a stamp duty holiday in July 2020.
High levels of activity continued throughout the remainder of the year, the property market remaining open through the second national lockdown in November 2020.
Testament to the high levels of activity, we sold 98% of all the properties that we listed for sale in 2020.
Outlook for 2021
The UK property market predictions for 2021 from economic forecasters and industry experts are varied. Though there is a general consensus that there will be a marginal average price increase of a few per cent over the year.
In agreement with these forecasters, we believe that in 2021 we will see market stabilisation, adjustment and a steady rate of price growth.
The strongest demand is likely to continue to be for larger properties and those with outside space. There was a distinct lack of family homes available for sale in 2020 – those priced correctly would sell in a matter of days, we expect this to continue.
Throughout 2020 we sold properties of all shapes and sizes though there was clearly a stronger demand for homes valued at £750,000 or more with 72% of all the sales completed by Horton and Garton Chiswick in 2020 being at these values.
Though the stamp duty holiday will be coming to an end in March we expect this to only have a limited impact as the majority of homes in Chiswick are in a higher price bracket than those who benefit most from the temporary reduction in rates. Though the stamp duty holiday is a welcome saving to anyone able to buy before the deadline.
To this end it is still possible to buy or sell before the end of March when the reduced rates will end. If you’re hoping to complete a transaction before the 31st March 2021, we strongly recommend you find the best possible team to help the purchase or sale conclude in a timely manner. Engaging with the best local estate agent, a reputable solicitor and an efficient mortgage broker will enable you to complete a transaction swiftly.
