(Bloomberg) -- The surge in U.K. property prices will persist into next year as housing needs outweigh economic uncertainty, according to Rightmove.
It predicts asking prices will climb 4% in 2021 as this year's unprecedented demand spills into the coming months. Currently there is a logjam of 650,000 properties in the market, with prices up 6.6% compared to this time last year, the property website said.
The first quarter will be busy with people hurrying to buy homes to take advantage of a temporary tax cut on purchases that ends in March. Cheap mortgage rates will attract first-time buyers and fuel activity, Rightmove said.
“Pandemic-related uncertainties have been around for nearly a year, and Brexit uncertainties for far longer, and record activity month after month has proved that movers are willing and able to act on their
new or existing housing priorities,” said Tim Bannister, a director at Rightmove.
Asking prices slipped 0.6% in December from the previous month but were up 6.6% from a year earlier, the fastest pace in four years, the website said.
©2020 Bloomberg L.P.
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