As the UK continues to tussle with the COVID crisis and starts to feel the first effects of the Brexit deal struck with the European Union just before 2020 elapsed, there’s the obvious question of how the UK property market is faring – and how it could fare as we get further into 2021.
Though house prices across the UK increased as 2020 neared its end, many experts on the UK property sector anticipate flat – at best – growth in these prices this year. However, this could, in itself, open up some exciting – and relatively uncommon – opportunities for property investors.
Is the UK property market avoiding a COVID crush?
In London, house prices increased by 2.5% last year, with HM Revenue & Customs recording, in October 2020, 105,630 transactions overall – the most recorded in one month since 2016. Such rises are thought to have been spurred by the UK Government’s introduction of the Stamp Duty Holiday incentive, which enabled up to £15,000 in tax to be saved on a £500,000 property.
However, it is predicted that house prices in the UK capital will fall by 1% this year, with the pandemic having led many people to contemplate taking up homes in more rural locations. With much of the population still working from home for what could be months to come, many people may also prefer to invest in their existing spaces rather than offload them on the property market.
Still, the continued rollout of the COVID-19 vaccine should, slowly but surely, edge the UK closer to the old normal – and, in turn, breathe new life into traditionally reliable means of property investment. Those include buy-to-let property investment, with the UK’s well-respected universities encouraging high demand for rental properties.
The Brex factor: should UK property investors be concerned about Brexit?
There is a mixed picture of Brexit’s anticipated impact on the UK property market. While house prices did stagnate after the EU referendum back in June 2016, house prices often plateau after a sprint of growth – a pattern notably seen again in 2017.
Furthermore, it has been suggested that London’s long-held status as a top pick for international investors will hold steady due to the capital’s enduring reputation as a truly global city with world-class facilities. The London population has continued to grow, helping to create new opportunities for keen investors to watch out for and capitalise on.
Overseas investors also stand to benefit from making financial savings when pouring money into UK property. This is partly due to sterling’s weakness but also because of discounted deals offered to help stoke demand while the country continues to wait for the pandemic to subside.
In this sense, the twin factors of COVID and Brexit have curbed the UK property market but also helped prime it for future growth. To learn how you could strategically act on the UK property investment opportunities as they emerge, please email email@example.com or phone 0207 096 0125 – we are happy to provide expert advice.