In what has been a challenging year for us all, I’m sure we’re all looking forward to the year ahead and the opportunities that are in store for 2021.
But let’s not sugar-coat it – with the Office for National Statistics forecasting up to 4 million unemployed in 2021, and the Chancellor of the Exchequer having summoned his cheque book for the staggering sum of £394billion – there’s no doubt that next year will be a recovery mission for the UK’s economy.
An essential business
But to the good news! As we’ve seen throughout 2020, the Government has deemed the housing market an essential business, due to the intrinsic value it has to the economy.
From keeping open throughout lockdowns, the Stamp Duty Payment Holiday and Help to Buy schemes designated to get first time buyers onto the ladder, for estate agents and the construction industry, it’s been business as normal – and rightly so.
Knowing our value
With the UK property worth over £10.3 trillion to the UK economy according to
ONS figures, it’s obvious the huge value in terms of monetary value.
But let’s take it one step further. Here is an example of the value of new homes to the property sector:
Housing and the economic story: Follow the trail…
Every home built +1.5 full-time jobs
Supply chain for these homes: x4 number of jobs
100,000 homes = 750,000 jobs
*Stats Courtesy of Home Builders Federation
Although the outlook remains uncertain for the UK’s economy in 2021, as you can see from the infographic, the housing market will play an essential role in trying to regenerate the UK’s beleaguered economy – and act as a catalyst for recovery.
The statistics speak for themselves – growth in housing, new homes and house exchanges equals jobs, activity in the supply chain and stimulation of economic activity.
Although it remains to be seen whether the Stamp Duty Holiday will be extended as we approach its March deadline, what is for certain, is that for both economic and employment issues, the housing market will be crucial.
And for the ultimate test of consumer confidence? Look no further than house prices. With a 2.5% increase in house prices predicted by Zoopla, house prices remaining stable, can only boost that road to recovery for the UK economy.
“The fact that house prices are predicted to increase is a real positive,” comments Arun Estates’ Managing Director, David Lench. “Coupled with the introduction of a Covid-19 vaccine and the prospect of returning to a degree of normality quicker than anticipated, this news has added some well-needed optimism.
“Added to this is a revaluation of housing needs – the desire for more green space, good internet speed, and properties complementing the shift in demand for home working. These key influencers are set to drive the narrative in 2021.”
This narrative, followed by a need for jobs and economic stimulus, will ensure that the property sector is front and centre in the drive for economic recovering into 2021 and beyond…