If you’re an investor, there’s a good chance that you’ve heard of the mini-boom that the property market in the United Kingdom is currently experiencing.
While many people expected for there to be at least some increase in sales post-lockdown, the sheer number being made in such a short time period is incredible – with the number of transactions agreed upon reaching higher than £37 billion in the space of a month. In addition, statistics show that while prices tend to fall by about 1.2% at this time of year normally, they’ve increased considerably in most parts of the UK.
If you’re someone who has waited on the side-lines, unsure of what to do with the difficulties of the pandemic weighing over your head, or even if you’re simply wondering if you could take advantage of this surge of sales; it might be worth learning more about what caused the mini-boom and what it might mean for you and your investments.
How did all of this start?
A high quantity of property sales in such a short time is no fluke – and there are a few things that may have caused this to happen.
One of the main reasons why so many people are buying is because there was such a long period where individuals were unable to invest. Now, with the bans being lifted on being able to move home, all the people who were planning on leaving their current house (and those who were itching to make a change) have jumped at the opportunity.
Another large factor to consider is that the property market in the UK had already been going strong before the virus, with a large number of people buying at the start of the year. This ties in with what was said above, as the lockdown only made more individuals (particularly those who were already planning on buying) more anxious to make a move. For those in the market and even those who were simply considering buying a house, spending so much time stuck indoors may have highlighted any issues that they may have been eager to get away from.
The stamp duty break that’s been in place for just a short while now has certainly increased the overall interest in buying too – as it has the potential to save investors thousands of pounds on their property purchases. While many sellers are increasing their prices to match, it still hasn’t stopped a flood of people from wanting to take advantage of the reduced taxes.
Is now the best time to invest?
While many people are uncertain of what their next move should be, it might be worth considering that there are a few risks that could come towards the end of the boom that could pose some difficulties for buyers and sellers alike. This ranges from things like less availability in general, to higher prices on LTV mortgage deals, which overall are issues that you might want to avoid while you still have the chance. Take a look at this advice from an expert on the process of finding a rental property.