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Keeping pace with the UK property boom

UK property boom

ONE profession that is rushed off its feet during the current UK housing market boom is real estate.

Initiatives such as stamp duty breaks and a rush for larger homes have meant this industry is working faster than ever to meet demand. The UK property market has been significantly affected by the COVID-19 pandemic. However, many other sectors have been more negatively impacted.

Recent surveys have revealed that than a fifth of households plan to move over the next 18 months, According to one particular survey, commissioned by by Zoopla, those most likely to move are younger people who live in cities, suburbs or large towns, and those whose working patterns have permanently changed.

The restrictions that the UK government put into place to help stop the spread of COVID-19 caused the nation to rapidly make a change to its typical lifestyle.

One perhaps surprising fact reveals that  46% of UK residents spent more time outside in July 2020 than before the pandemic struck. Added to this, a survey of more than 3,000 UK office workers found that over 94% would prefer to work from home for at least one day a week.

This lifestyle change caused a shift in home requirements. for UK residents who now desire a home with more outside space and access to local green areas. According to data released by Rightmove, the most eagerly sought-after property in 2021 was a two bed semi-detached house – a year before, it would have been a two bed flat.

Property remains a solid and secure investment, despite the economic uncertainty brought on firstly by Brexit and then the Covid-19 pandemic. Property prices in the UK have soared since 2020, with the stamp duty ‘holiday’ fuelling buyer demand, According to the Halifax June 2021 price index there has been a nationwide growth of 8.8%.

Rental demand, too, has increased, as tenants look for more space so they can work from home.

Here are just some of the reasons people invest in properties:

  • Rental income – especially useful for the self-employed or retired to have predictable income
  • Capital growth – property prices often rise
  • Diversification – one of the key components of a well structured investing portfolio
  • Easy to understand – property is tangible

Thank you for reading this article, please remember to check back regularly for the latest news on property and investments.

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