With the current stamp duty holiday which ends on 31 March 2021 at the same time an additional 2% is imposed on non-residents, foreign investors can save 5% (£25,000) on a £500,000 property in the UK. Furthermore cash buyers in particular are usually able to negotiate a decent discount on completed properties as developers are keen to dispose of the last few available units in such developments. This favorable environment for investors adds up to substantial capital savings at the same time that rental supply across the UK is down 6.8% year on year according to property search website Home.co.uk.
Posted by: Kelvin Tayfield, Sun, Aug 16th 2020
According to website Zoopla’s research Director, the Coronavirus lockdown exacerbated the UK housing supply shortage as construction slowed down. He went on to state that supply this year has fallen by 18.4% while demand has increased by 25.3%. This is a staggering mismatch which will underpin property prices at least for the remainder of 2020 with the Northern Cities and Midlands showing the strongest trends. Total sales for this year are still expected to be approximately 15% below 2019 levels so the catch up can be expected to support demand into 2021.
Posted by: Kelvin Tayfield, Sat, Aug 8th 2020
According to Nationwide Building Society’s Chief Economist, UK house prices jumped 1.7% in July bringing the year on year growth up to 1.5%. The speedy recovery is attributed to the pent-up demand caused by the lockdown and the recently announced stamp duty holiday.
The CEO of Enness Global Mortgages stated that thanks to record low mortgage rates, activity has been high and in what may be a surprise to some, the top end of the market has seen an increase in demand from both local and foreign investors.
Posted by: Kelvin Tayfield, Sun, Aug 2nd 2020
According to Knight Frank in London, the strength in the UK property market since the lockdown ended has taken people by surprise. This has been further buoyed by the recently announced stamp duty holiday. Other brokers and developers have reported a significant increase in interest from Gulf investors who wish to take advantage of the exchange rate expecting Sterling to strengthen once a Brexit deal is reached. In particular, ready or near ready properties are attracting attention in view of the additional 2% stamp duty on foreign investment which comes into effect on 1 April 2021.
Posted by: Kelvin Tayfield, Sat, Jul 25th 2020
Website, reallymoving.com has predicted this increase over the next three months based on an increase in activity levels, record low interest rates and the recently announced stamp duty holiday. Despite the Covid lockdown and resultant economic uncertainty, they are predicting an annual growth of 4.7% across the UK. At the same time, data from other sources is showing that properties which offer lifestyle benefits such as gyms, gardens and open spaces nearby remain the most popular as buyers believe that they will be able to work from home more regularly.
Posted by: Kelvin Tayfield, Sun, Jul 19th 2020