Since 2021 has come to an end, finance experts and those within the housing and development industries have been reflecting upon the housing market of the past year. Using this information to not only provide a summary of the 2021 for buyers and sellers but also to make predictions for the new year. One major takeaway from the year was the increase in the number of home loans being handed out. Data shows this was up by 31% compared to 2020. 2021 was a record year for mortgage lending in the UK according to various sources. Rosconn Strategic Land have helped to explain the facts and figures and the reasons for why we have seen this increase in lending in the past year. 

House buying in 2021 

In 2021 we saw a house buying ‘frenzy’, which meant mortgage lending was on the up, and quite considerably too. According to UK finance this increase in property buyers was the driver for the increase in lending. However, predictions suggest this lending will settle again in 2022 to normal levels. 

Thanks to a stamp duty holiday, buyers had the opportunity to purchase property without the stamp duty tax, meaning they were saving on average £4,500 on their transaction. As the government had introduced this for a limited time to help the housing market flourish after a difficult year in 2020, buyers rushed at the opportunity to make the most of this while they could. Which is one reason why house buying, and mortgage lending saw such an increase. 

How the pandemic affected the housing market

Not only did the stamp duty holiday encourage homeowners to consider buying new property or for first time buyers to make the jump, the covid pandemic has also influenced buyer behaviour. Since a mix of homeworking and office based work has become the new normal within the UK, and across the world, the commute no longer plays as much of an important factor for many homebuyers. As many companies continue to embrace remote working, professional couples and families have seen this period of time as the perfect opportunity to up sticks and relocate. This may have allowed many to move out of expensive inner-city areas, and suburbs, into more rural areas further afield where they can get more bang for their buck. Continuing to earn their professional high-paying city salaries whilst living in rural areas with a much more relaxed and slower pace of life.

As we start 2022, it has been predicted that this lending will slow, but house prices will continue to rise as we have seen over the last few years.