“The UK real estate demand is soaring with many of us, including foreign investors, looking to take advantage of the current schemes that have been announced by the government. We are working constantly and endlessly to ensure we adapt and continue to provide a high level of service. We understand the stress and pressure the current pandemic may have caused to many of our clients who are in the process of selling, buying and investing in real estate but the future looks positive with number of transactions across the nation continuously growing. Whilst many of us are facing difficult times ahead in other aspects we wish to assure that we are here to assist and support wherever we can”.
Whilst the Covid-19 pandemic has had a huge impact on global markets, the UK financial sector, employment and the nation’s personal lives, the UK property market continues to be fairly steady.
Forecasts remain progressive. Those that put their house moves on hold since March, now appear to be resuming their efforts to move or buy a new home.
Rishi Sunak’s Economic Statement on 8 July was the accelerant needed to kick-start the property market in England, following predictions that house prices would fall and cause market stagnation. The previous Stamp Duty holiday was introduced in 2008 in an attempt to lift the market following the financial crisis. However, those that are looking to make the most out of the tax holiday need to do so by the 31 March 2021.
The summer housing boom also saw wealthy buyers, unaffected by redundancies or reduced household incomes, fuelling the frenzy of relocating out of London to the suburbs. The working-from-home trend has seen buyers looking for properties that can offer more comfort such as a larger garden or additional bedrooms.
UK house prices rose by 5% in September, compared with a year ago, as the property market saw an increase in post-Lockdown demand. The Nationwide Building Society reported a surge in demand for houses from July to the end of September. This summer also saw a surge in UK ”staycations”, with many individuals and families staying in the UK for their getaways, thus driving up the demand for holiday properties.
However, it is not just the residential markets that have seen an increase in demand. The third tax quarter also saw a roar in commercial investments, with a large chunk of the investors being international clients. Acuitus, one of the largest auction houses in the UK, sold 86% of its lots in the October auction, demonstrating that interest and confidence in the commercial markets has been restored.
Landlords are also coming back with the Government’s ban on evictions expiring on 20 September 2020. Lockdown saw many Landlords claiming mortgage payment holidays as tenants were unable to pay their rent. Now able to take legal action against their tenants, landlords will be looking to invest in the market again.
The Stamp Duty holiday has encouraged many first-time buyers to push forward their purchases, thus driving a demand for houses within the market. Those looking to sell should consider doing so now, to take advantage of the rising demand.
What will the second Lockdown, mean for the property market? The Housing Minister has confirmed that renters and homeowners in England will still be allowed to move- and removal firms, tradespeople and estate agents will still be able to operate, and will have access to the properties. Sellers and buyers must just be mindful that there is a chance that their completion date may be delayed should either party need to self-isolate, or is tested positive for COVID-19.
Investors must remember, too, that this Lockdown will have fewer restrictions than in March, allowing individuals to have more flexibility on how they wish to proceed.
Once the pandemic is over, the UK and the rest of the world will become a lot more optimistic, thus hopefully leading to a rise in spending within the economy.
On behalf of the teams at Axiom Stone, we wish everyone a very Happy Diwali and a prosperous new year with the hope that it allows us to meet our family and friends again without restrictions.
Should you wish to discuss how Axiom Stone can help you with your next investment, property purchase or litigation matter, then please us on 0208 951 6989. Axiom Stone offer a range of legal services, from residential and commercial conveyancing, to immigration, corporate, litigation and family services.
