FALSE: In May 2020, when we had greater clarity as to the potential impacts of lockdowns on the UK housing market, the spread of forecasts indicated that predicting the future was a difficult task. Some analysts expected falls by as much as 10% whilst others saw potential growth of plus 5%. Those in the latter pack were closer to the mark as national house prices defied expectations, growing by 6.4% in the year to Q4 2020; the highest year on year growth since the year to Q4 2014. Price outperformance was driven by the East Midlands, outer South East and the North West. London’s growth was in line with the average national rate, albeit earlier predictions were also similarly dire due to the extensive limitations on travel suppressing overseas demand.
FALSE: Mid way through 2020 Rightmove published data showing that buyer inquiries in June and July showed a 126% increase in people looking at villages compared with the same period a year earlier. The pandemic has no doubt prompted a mindshift towards more rural areas, whether this stays true for the longer term though remains to be seen.
Our predictions are that the city has an enduring appeal, a sentiment that is backed up by research we conducted in the second half of 2020, when almost a third of UK respondents looking to move within the next two years said they wanted to live in a big city (29%). A town was the choice of 17%, and 12% said they would prefer a small city.