https://www.canva.com/ – Canva Pro
As England prepares for another lockdown, the future for Covid-19 is unclear, but one thing’s for sure, the UK housing market continues to thrive despite the global pandemic.
It’s no secret that the property market has been flourishing in the past few months. UK estate agents have suggested that over £37bn in sales have been recorded in some summer months, – exceeding previous sales recorded over the last ten years.
People are choosing to invest in markets that have shown to prosper when faced with financial hardship and entering into a recession. Property investment is considered a more reliable asset when compared to stocks and shares and with the promising discounts and high rental yields, not to mention the long-term capital growth, it’s no wonder the market is soaring at the moment.
Read on to find out more about the surge in UK house prices and why you too should take advantage of lucrative deals on the market and secure a property investment.
So, how can property investors take advantage? Savvy investors are jumping on the heavily discounted prices for landing a property deal at the moment. Property companies are helping to keep the market afloat by offering investors discounts such as lower property prices, lower deposits, and assured rental yields to help expand their portfolio.
Tip – it’s worth contacting your local property investment companies to check what exclusive discounts that have to offer.
Many people may have been pondering over buying a property for a while, and now would be the ideal time to secure the deal and reap the rewards of a long-term investment. The only downside to the current demand for buying property may be the delays with processing mortgages, as some lenders typically limit their product ranges following a surge.
Stamp Duty Cut
Another reason that could have led to a UK mini-boom in the property market is the government’s decision to grant a stamp duty holiday to those in England. Again, this was implemented to help the market and encourage residential buyers to secure a deal. The authoritative decision to amplify the buyer surge paid off and took asking prices to an all-time high with people set to reap the rewards from their investments in the future.
Buyers will only pay stamp duty land tax on properties that exceed £500,000, motivating more people to buy. The stamp duty cut is available to second-time buyers and landlords, but they will still need to cover the additional 3% stamp duty charges under previous rules. If investors continue to benefit from this tax relief, up until it’s end date on the 31st of March 2021, then the housing market will only continue to thrive.
Demand for Rental Properties
Finally, the demand for rental properties has inspired investors from all around the globe to secure a buy to let property to meet people’s needs. As unemployment levels are also rising, potential homeowners are backing out of deals and opting to rent a property instead, – which provided another great incentive for smart investors.
It has been all about choosing the right location to land a lucrative deal, as investors look for consistent rental payments and an increase in the value of the property over time. In the UK especially, there are multiple hotspots for buy to let property, and city centre living has become increasingly popular amongst young professionals and students looking to prosper in their career, whilst finding a modern place to live. Award-winning UK property investment company RWinvest notes Liverpool and Manchester to be among some of the best places to live and invest in in 2020, where investors can enjoy up to 10% yields on their investments.