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With the Bank of England holding interest rates at just 0.1% and boosting quantitative easing by £150 billion, buying a property is arguably one of the best decisions you can make in 2020. Indeed, research from Source Business shows that 1 in 10 landlords are planning to purchase a buy-to-let property, a rise of 3% from 2019. With landlord confidence on the rise and stamp duty relief until the end of March 2021 there has been an increase in demand for not only larger properties, but also for properties located outside of London and the South East into more rural areas. What’s more, as more tenants work from home and need more space, having more room has never been so important and when it comes to where we live – size does matter.
The Mistoria Group’s managing director, Mish Liyanage, commented: “We are seeing a rise in professional landlords looking to acquire affordable terraced properties with gardens and apartments in the North West. Lower prices, high yields, an expanding population and the Northern Powerhouse initiative/HS2 has contributed to this interest.”
According to Knight Frank’s research, in October 2020 quarterly prices rose by 0.9% overall in prime outer London areas. This is the biggest rise in five years and areas showing the greatest increase in London are Belsize Park (3.2%), Dulwich (2.3%), Wandsworth (2.1%) and Wimbledon (1.8%).
Head of UK Residential Research at Knight Frank, Tom Bill, said: “The second national lockdown in England is unlikely to impact the prime London property market in the way the first one did. The property market remains open during this month-long lockdown and the momentum generated since the market re-opened in May will drive deal activity into Q1 next year.”
According to Nationwide’s property report, house prices in the UK saw their highest annual rise in October 2020 since 2016. The average property value in September 2020 rose by 5% in comparison to September 2019. What’s more, Savills research and RICS data also shows a much greater interest from buyers and landlords with Savills predicting growth of 4% in house prices by the end of 2020, with the North West leading the way.
With property agents and construction sites continuing to operate during the second UK lockdown, demand is still strong despite the impact of COVID-19. Halifax reported that with house prices rising by 7.5% year-on-year, the average price for a house across the UK is now £250,457. Yes, the stamp duty relief is playing a big role and yes, the property market will slow down over the winter months, as it traditionally does. However, many across the industry believe that the current positive trends will continue well into 2021.
As Jamie Johnson, chief executive of FJP Investment says: “I anticipate the rate of house price growth to slow down in November, however it will no doubt continue to remain positive territory. People are clearly looking to invest in safe and secure assets during this uncertain climate, and real estate has a proven track record of being resilient and quickly recovering from a period of market volatility.”
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We would love to hear your thoughts on what’s happening and views on what may be in store for property in 2021.