One of the industries that were hit hard by the COVID-19’s devastating effects includes the UK property market. Coronavirus restrictions wreaked havoc on the previously booming sector. People could no longer conduct in-person viewing, mainly due to protocols restricting movements to curb the corona virus’s spread. Buyers could also not move to their new homes to comply with the lockdown measures in place.
Estate agents and homebuyers experienced the downside of the market. However, the property market in the UK began to boom immediately after the lockdown. The post-lockdown recovery impact has seen the UK’s housing industry experienced a V-shaped economic recovery- booming monthly property transactions.
Reasons Why the UK Housing Industry Boomed After Lockdown Ended
Working from Home
More people began purchasing bigger and spacious houses to adhere to the provision requiring them to work from home. The sharp rise after the lockdown ended reflected a sharp rise increase in monthly expenses on houses. According to a report by Zoopla, houses larger the four or five bedrooms are the most popular homes in the market. The number of transactions has significantly increased, and so have mortgage approvals. Though varying from country to country, the property market in Northern Ireland, England, Wales, and Scotland has recorded a significant increase in purchase after the lockdown was lifted.
Government Temporarily Cutting Stamp Duty
Though varying from country-to-country, UK property transactions have significantly increased since the government announced the temporary cut on stamp duty. More people are taking advantage of this provision to save approximately £15,000 by moving into new homes before the tax cut expected to end by March 31.
How Have House Prices Changed After the Pandemic?
With the continued stamp duty holiday and expected Help to Buy: Equity Loan scheme, the figures may continue to fluctuate. However, the UK’s housing industry will continue booming into the future. December figures by the Land Registry’s UK House Price Index shows that the sold properties amounted to 8.5% year-on-year and 1.2% month-on-month increase.
According to Yomdel Property Sentiment Tracker (YPST), more people visited the estate agent website on August last year compared to 2019. Similarly, enquiries increased by 111 percent over the same period.
The Future of the UK Housing Industry
As the rush to buy homes continues before the stamp duty holiday ends. The market will likely face a downside as this remains the main factor fuelling the UK housing market recovery. However, this is not the only fear as the incoming scheme, Help to Buy equity loan scheme, beginning April 1, bars all but first-time buyers. Beside additional charges such as 3 per cent surcharge for those owning houses elsewhere and an extra 2 per cent in stamp duty for any oversee buyer purchasing a home in either Northern Ireland or England. Nonetheless, predicting the markets based on prices and government will remain incomprehensive now that a wide array of factors such as Brexit forces will become pivotal in the 2021 economy.
All You Should Know if You are Planning to Move
Most people fear moving from one house to another, mainly due to challenges in transporting and storing their belongings. However, it would be best if you did the following as you plan to move:
- Consider owning a storage unit– Having a self-storage unit can prove essential, especially if you plan to sell your house before relocating. You can put your property in the storage unit and clear the house to allow potential buyers to view it. You can also store your valuable in Containerized storage as you go house hunting.
- Do your research- Before moving to a new home, ensure you conduct extensive research to determine if it suits your needs.
- Get quotes from removals firms- Consider using a professional removal firm to make moving simpler and less stressful. Enjoy affordable moving by Cookson & Sons movers and storers. Our team excels in handling domestic removal and commercial relocation. Whether you are moving within the UK or moving out of the UK, contact us for a quote today.