Nick Corkhill looks at what is likely to happen next in the UK Property Market. On the one hand, some people think we could be entering a bust. On the other hand, people think that we could be entering a boom. Nick puts both arguments forward and gives his prediction for the years ahead.
Arguments for a bust:
- Stamp Duty holiday ends in September 2021
- Furlough ends in September 2021
- House Prices are at an all-time high
Arguments for a boom:
- Interest rates are at an all-time low
- Unemployment is low
- Government backs 95% LTV mortgages
- Lots of accidental savers due to Covid
- Quantitative Easing (Printing more money)
To conclude, the 18-year property cycle is playing out perfectly. If we follow this cycle the crash is not expected until around 2026. We think the property market will see steady continued growth over the next 3/4 years before a crash comes.
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