It’s no secret that the property market has been booming since July, and shows no signs of slowing down. According to UK estate agents Rightmove, over 37 billion pounds in sales were recorded in August, the highest monthly sales in more than ten years.
It is clear from the statistics that the housing market is thriving, despite the country heading into a recession following the effects of Covid-19, and perhaps due to the limitations put on summer vacations people have turned to property investment instead.
Investing in any asset, whether it be property or the stock market is always a risk, however through completing your own due diligence, you will conclude that it’s best to invest in markets that have shown to prosper when faced with economic and financial hardship. The property market is considered a more stable asset when compared to stocks and shares and can provide an ideal way to build your investment portfolio during this time.
The housing market is offering some incredible discounts and rental yields at the moment, without mentioning the long-term capital appreciation you’re set to receive in the future. Read on to find out more about how the UK property market is currently soaring.
Stamp Duty Cut
One of the reasons that could have sparked the UK’s ‘mini-boom’ is the government’s decision to roll out a stamp duty holiday to those in England and Northern Ireland, in hope to encourage residential buyers and help the property market. Second-time buyers and landlords are also eligible for the stamp duty cut but will still need to pay the additional 3% stamp duty charges under earlier rules. This tax relief is available on properties purchased from July 8th up until March 31st, 2021, where buyers will only pay stamp duty land tax on properties that exceed £500,000.
As the global pandemic turned many lives and businesses upside-down, people began to question whether or not they should sell their homes and continue with potential purchases. Thankfully, the chancellor’s plan to amplify the buyer surge and take asking prices to an all-time high paid off with people set to benefit from their long-term investments in the future.
Increased Demand for Rentals
In addition to the stamp duty cut, landlords in England, especially in the north-west can benefit from up to 10% rental yields on their property investments. With the demand for more rental properties, investors can be sure to make a healthy return whilst providing homes to people who are now looking to rent as opposed to buying a property. Unfortunately, unemployment levels continue to increase, and first-time buyers are rethinking their financial strategy on becoming homeowners or residing as tenants for the time being.
Buy to let investments help meet the rise in tenant demand and can be an excellent option for both new and experienced investors with a plethora of buy to let hotspots to choose from. If this is something you’re considering, it is still critical to research the best location for your investment, to profit from the rental payments and long-term value of the property when you come to sell further down the line. UK property specialists RWinvest have excellent guides on the best areas to invest, particularly in the north of England where rewards are at their highest.
Take Advantage of Current Discounts
Typically, during a financial crisis, companies will look to offer promotions and discounts to help process sales, and the property market is no exception. Real estate agents are promoting lower property prices as well as lower deposits across their current listings to entice investors.
If you’re considering property investment, carry out your research beforehand and look into multiple companies to ensure you get the best deal available.
Tip – speak directly to the property company as they may be able to offer exclusive deals that are not available online.