How various factors will affect the UK residential property market in 2021


Brexit will undoubtedly have its impact on the UK real estate market. Some building materials are shipped into the Kingdom from the mainland. Accordingly, under the new regulation, delays at ports cannot be ruled out, which may have a negative impact on timely deliveries for developers. However, builders have already learned in recent years to manage expectations and demand more skillfully. For the most part, the market’s largest developers remain positive about 2021, as demand for housing is high and certainty about the terms of Britain’s exit from the European Union has been achieved.


The country is in recession but, due to the abolition of the Stamp Duty for purchases cheaper than £500,000, the strain on the property market is now much greater than at any time in the last 10 years. After March 2021, when Stamp Duty returns to the market, the situation in the housing market could change dramatically. Negative trends are likely to return to the market in the second half of 2021, unless, of course, the government takes new stimulus measures. A large number of people are losing their jobs and mostly the lower end of the real estate market is suffering. Also, sooner or later, the government will need to pay back the unprecedented financial support it gave people during the pandemic. There’s a good chance the government will have no choice but to raise taxes, and that will negatively impact people’s ability to borrow.

Housing Prices

At the very least, home prices will remain the same as the huge demand and lack of supply will continue to be the underlying factors affecting pricing and the market will feel pressure from buyers. Another positive for the market will be historically low interest rates on loans, which will make mortgages even more affordable. At the same time, it is important to keep in mind that the trend of people moving out of cities will continue. Since many people will continue to work remotely (in whole or in part), buyers will be looking for homes with more space, gardens and land and closer to the sea.

Environmental Technology

There has been a great increase in interest in “green” technology over the past few years. Many potential buyers of a house or apartment in England are interested in electric car chargers, geothermal heat pumps and solar panel batteries. Therefore, construction companies are forced to introduce more and more new environmental technologies in the planning of new facilities. By 2025, gas cylinders will be completely banned in the construction of new homes.

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Showcases for new projects

The established practice of showing homes by appointment will continue to be used by sales departments. This scheme made the work of the sales department more productive. Most of the information – information about the area, information about the quality of materials used in the construction, the layout, etc. – is presented online and the potential buyer has enough time to think about everything before booking a visit to the office. Construction companies usually take exceptional security measures from COVID when showing the properties. Thorough disinfection, social distancing, and masks have all become part of the national consciousness.

Lack of skilled workers

Brexit to some extent has caused the UK construction industry, as well as others, to experience a shortage of skilled workers. Construction companies intend to address this issue by creating their own accredited courses and training schools to train their own skilled employees.

Competition for land plots

The land market remains fiercely competitive due to the lack of suitable plots. Many developers are often chasing the same parcels of land. The one who has a more flexible policy – looking at challenging sites and then increasing their value with infrastructure improvements and investments – wins. This takes time, money and foresight.

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