Why Did the UK Property Market Perform Well During Covid-19 Pandemic?
Different factors led to the UK property market performing so well throughout the coronavirus pandemic in 2020.
From an investment perspective, many investors chose to buy property during this time as they recognised the potential behind investing when prices are low and understood that house prices would soon rise to new levels.
Developers began offering enticing deals for their properties soon after the beginning of the pandemic, and savvy investors made the most of this.
With average property prices set to rise by as much as 28.8% in the North West region, there is tremendous capital growth to be made when buying property in the best places to invest in the UK.
The stamp duty holiday, which launched in July, is undoubtedly another massive factor in the housing market boom of 2020, allowing investors to save as much as £15,000 in stamp duty tax.
Another reason that housing market activity has stayed strong during Covid-19 is the high demand for rental accommodation, which has opened up more opportunities to buy to let investors.
What Does the Third National Lockdown Mean for the Property Market?
On the 4th January 2021, the UK entered its third national lockdown.
Unlike during the first lockdown in March 2020, the property market remained fully open during the third UK lockdown, which is good news for the housing market.
Housing market activity resumed as normal during this period.
Are Viewings Still Allowed?
Property viewings were still permitted during the 2021 lockdown, but buyers had to adhere to certain guidelines.
This includes maintaining social distancing at all times and ensuring there are no more than two households inside a property at any one time.
Buyers are not permitted to visit property viewings with people outside of their household or support bubble.
The use of face masks is also encouraged during in-person viewings.
For those interested in buying property with RWinvest but are not comfortable attending an in-person property viewing, virtual viewings are still available.
Are There Properties on the Market?
Yes, there are still plenty of properties on the market in the UK.
Like us at RWinvest, most companies are still up and running during this time but keeping our staff safe by enforcing remote working and Covid-secure policies.
We have a range of excellent investment properties listed on our website, which we would be happy to discuss with those interested.
Our latest investment opportunity, ELEMENT – The Quarter, is a unique eco property that’s priced from just £74,950 and offers assured rental yields of 8% for one year.
Can Offers on Properties Still Be Accepted?
Yes, offers on properties can still be accepted during this time.
If you would like to make an offer on a property, our team of property consultants, client care professionals, and post-sales managers can assist you in any way possible and help take you from the offer to the exchange stage of your purchase.
How Does Coronavirus Affect My Mortgage?
UK banks are offering those with a residential or buy-to-let mortgage the chance to take a ‘repayment holiday’ for up to three months.
This means that if you’re struggling to meet mortgage repayments due to financial strain brought on by the coronavirus pandemic, you’re able to take a break from paying your usual mortgage costs.
During this time, you will continue being charged interest on your mortgage, which will be applied to your mortgage balance monthly.
This means that when the mortgage break is over, you may be paying more than you did previously.
Over 2020, there have been some significant changes to mortgages.
Most banks are now looking for a deposit of at least 15% for residential mortgages, with very few mortgage deals available for those with a 5% or 10% deposit.
Those looking to secure a buy-to-let mortgage for their investment are advised to put down a minimum deposit of 40% if they can due to high demand.