What’s to Come in Construction in 2021
If there were three things to take from 2020, the first would be that the construction industry and housing market are more resilient than we ever thought. The second is forecasts are just forecasts and last but not least, adaptability is the key to construction in 2021.
More than 100,000 additional house sales are expected during the first three months of 2021, as the rebound in the property market continues and buyers rush to complete their purchases before the end of the stamp duty holiday on March 31st.
While uncertainties remain for 2021, the UK property market will continue to show its strength. In the wake of Covid-19, more people are prioritising their housing needs with better views and outdoor space/larger balconies moving up personal check lists.
More Mortgage Deals
One of the more serious consequences of the pandemic and the adjacent property boom has been the withdrawal of the vast majority of high-LTV mortgages deals from the market. First time buyers in 2020 suddenly found themselves having to move from 5% mortgages to 15% mortgages. 2021 will see the return of low-deposit mortgages for first time buyers and those utilising loan schemes such as Help to Buy.
More Affordable Homes
In many areas across the country, the need to address the affordable homes shortage will be met by central and local government initiatives. The Mayor of London, Sadiq Khan, has outlined his plans for a new generation of social housing for Londoners. Sadiq’s new £4 billion Affordable Homes Programme for 2021-26 will build new safe, green, well-designed social housing.
Many homebuilders and construction professionals are looking at 2021 optimistically buoyed by the anticipation of the COVID-19 vaccine roll-out and increasing buyer confidence. Crucially for the industry, no experts or data are pointing to any kind of crash so in part, 2021 will be a year of adaptability and resilience.