The global pandemic repeated lockdown measures, and an overall weakening economy has affected the UK property market the past year. Even so, the sector has proven its resilience during this period of uncertainty and we have seen a property boom during the last months of 2020. Property experts say that this boom could continue through the rest of 2021. Although the unemployment rate is still fairly high, compared to the pre-pandemic levels, the stamp duty holiday has ensured good demands in the sector.
Impacts Of COVID-19
This year, people have more confidence due to the roll-out of the vaccination program and it’s expected that everything will be back to normal soon. As more and more people are getting vaccinated, there’s more optimism about the UK property market and a stronger economy. Job uncertainty may put some pressure on the market, but as more job opportunities become available, we will see signs of a recovery soon. Banks are still eager to lend and interest rates will still be relatively low this year.
In recent months, we have seen an increase in demand for housing, especially as a response to the stamp duty holiday. Successive lockdowns have caused potential buyers to reassess their priorities, making some look for high-end properties with more luxury features. Because people are spending more time at home, they will look for properties with extra space and that are in urban areas. In a post-COVID world, businesses, schools, and colleges will continue to recognise the viability of online interaction. Many people will remain working and studying from home after the UK government completely lifts lockdown restrictions.
Low Mortgage Rates
There’s a slim chance that the Bank of England will increase its base interest rate. This means that mortgage rates will remain attractive for many homebuyers. Even after the stamp duty holiday, low-interest rates will continue to encourage homebuyers to complete new home transactions. Low-deposit mortgages will have greater availability and competitive rates this year, which will appeal to first-time buyers. Although forecasts are not set in stone, we have seen multiple favourable factors in the property market sector which means that now is the best time to buy.
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