December 2020 Market Update

Last updated: 4.58pm, Tuesday 29th December 2020 by

We look in great detail at the current property market in the UK and Glasgow, Brexit and rental market. 

29th December 2020
By Gordon Campbell

Below is the summary version of the detailed report.

The full detailed report can be read on this link here December 2020 UK Market Update

Current UK Economy

The rate of change in the UK property market over the year 2020 has been as 

suprising as its resilience, especially when viewed with the ensuing instability andeconomic volatility against the backdrop of the pandemic.


UK GDP had fallen over two consecutive quarters.

The 19.8% plunge in GDP in the three months to June following a 2.2% drop in the first three months of the year meant that Britain did meet the definition of recession.

But since then, there has been a bounce back with recent growth figures of 10.02% between August and October but in most recent figures released by the Office of National Statistics growth has slowed further to just 0.4%.

Business investment grew 9.4% again in quarter 3 but was 19% below its pre pandemic peak.

Current UK Property

2020 has been a rollercoaster year with the pandemic unlocking a sizable amount of latent demand for housing that has pushed prices higher and led to a 26% increase in the value of homes sold over the year.


Headline Summary
  • House price growth climbs to +3.9% -expected to plateau at 5% in 2021 Q1
  • Strong end to 2020 with demand and sales agreed >30% above last year.
  • 2020 registered 40% more demand than 2019, and sales up 9% UK-wide housing market closure of nearly 2 months.
  • Strong rebound in sales activity pushes total value of homes sold in 2020 up 26%, -an extra £62bn in sales.
  • Strong start expected for 2021

Continued Demand

Zoopla forecast that the housing market is likely to have its strongest December for more than a decade with a figure of 4% growth forecasted by the end of the year.

House price inflation now stands at 3.5% which is the highest figure for more than 3 years and a significant rise from the 1.2% from the same period last year.


This week the UK and the EU agreed to the final terms for the Withdrawal Agreement that will take effect from 1st January 2021.


The deal for the UK means:

  • The UK becoming a sovereign state once again
  • Zero tariffs
  • Zero quotas
  • Access to single market
  • No ECJ jurisdiction
  • No EU regulations
  • No membership fees.
  • Free to trade with every country in the world


With this agreement and as with any negotiation, it is all about compromise and yes there will have been concessions on either side. And yes there will be some challenges. There always was whatever the outcome was going to be.


This will however, in our opinion, there will be new and huge opportunities for investors and businesses,catapult the UK to further success in the world and to deepen its entrepreneurism, drive, purpose and overall success.

The Scottish and Glasgow Property Market


Like certain parts of the UK, Scotland and particularly Glasgow and its metropolitan area has seen a huge demand for properties to buy and rent in the last year.

House demand is unprecedented in Glasgow and surrounding areas.

Properties are selling well over the asking price and Home Report value.

The value of the residential property sales market in Scotland was £18.5 billion in 2019-20, an increase of 2.0 per cent when compared with 2018-19.

The Scottish market has also remained buoyant in the most recent UK House Price Index prices in Scotland for September have risen by 4.5% when compared to the same month in 2019 with the average price of a property no standing at £161,510.

But the headline figure, like the wider UK picture, hides significant regional variations with some areas like Aberdeen seeing further deflation, down 7.9% since last year.

Since 2003-04, the average residential property price has increased by 81 per cent.

The full detailed report can be read on this link here December 2020 UK Market Update


In Glasgow, the market uptick, so often seen in the third quarter of the year, looks set to be sustained throughout much of Q4 2020 and into Q1 2021 with unseasonably high demand evident rental property and property for sale.

In the next blog we will look at forecast predictions for 2021, and despite the continuation of the virus, the property rental and sales market in Glasgow continues to be hugely optimistic and in demand.

The race for space continues.


And remember….

For Alliance Property Group and despite the very strong market, we continue to be very busy and confident and excited about the opportunities ahead.


Being a property owner, owning assets with residual income every month gives you freedom, wealth and income.


By sharing our 37 years’ experience, knowledge and expertise, we helped nearly 200 investors in 2020 achieve just that.

Let us help you achieve your property goals for 2021 and create your portfolio, legacy and freedom.