Few people would predict that the UK housing market will be at a high level in a year when the pandemic sweeps the world. Government data show that rents have even reached historical highs of £725 per month in the UK and £1,435 in London. The stamp duty holiday in March has encouraged people to buy frantically because people have saved up to £15,000, while interest rates are still close to record lows, and tenants are forbidden to leave until mid-January.
The jury came out. Rightmove predicts a 4% rise. Director Tim Bannister said: “Unless the stamp duty holiday is extended, there may be a stagnation in the second quarter, but for many people, the revocation will not succeed, although it may cause them to reduce their offer.
On the other hand, the Economic and Business Research Center warned that by 2021 there would be a severe recession and a 14% price drop. Most other analysts believe that the increase is only 1% or 2%.
Stamp Duty Race
If you have not completed the purchase before March 31, you will have to pay an extra £15,000 stamp duty.
It is predicted that due to COVID-19 and vacations, thousands of buyers may delay their orders due to the backlog, and mortgage lenders, municipal planners, and transporters work slower.
David Greene, president of the Bar Association, warned: “Consumers must be aware that if they buy or sell now, they are increasingly unlikely to complete the transaction before the deadline.
There is speculation that Prime Minister Rishi Sunak will accept the Independent Tax Simplification Office and the Social Market Foundation call to increase the capital gains tax on the profits of holiday home sellers and buyers, or even expand it to sales profits. Despite protests from Sunak’s party, there are also many major houses.
First Time Buyers
“Help to buy” has helped 270,000 people own houses: home buyers borrowed 20% of the purchase price without interest for the first five years but only needed to pay a 5% deposit.
But the plan changed in April, and only first-time buyers have been eligible since then.
Will German of Homes England, a government agency, said: “We are delighted to help buyers with fewer deposits to own homes when there are fewer options.”
If the COVID-19 vaccine is launched as planned, agents hope that the outflow of buyers from cities to countries will slow. There is already signs-the institution Knight Frank reported that there was more interest in London housing in November and December than at any time since March.
Rental Roll On
Real estate agency Hampton said that landlords snapped up one-seventh of the houses sold in November. The proportion of private rental housing will expand from the current 20%, and the new Tenant Reform Act is expected to become law in 2021, making it more difficult for tenants to be evicted.
The Wall Is Back
John Lewis said that homebuyers and renters want to separate the work area from the leisure area during COVID-19 so that they will be at home during COVID-19 than usual.
A survey of 1,000 companies by the Board of Directors shows that by 2021, 74% of companies will continue to work from home.
Zoom with A View
In the United States, an increasingly popular fashion is to download luxurious mansion backgrounds to use Zoom. This could mean a country library or floor-to-ceiling windows overlooking downtown Manhattan. Most importantly, they are free.
Assistance for House Hunters
The brothers who founded Purplebricks-Michael and Kenny Bruce are launching a new sales website called Boomin to compete with Rightmove. A multi-million-pound marketing blitz will begin next month.
Will it become the site of choice for house hunters?