At the Heaton Group we’re committed to bringing you the latest updates and information around the property market, especially now in the pandemic where there’s a level of uncertainty. There’s good news though…
UK House Prices set to rise
Homebuyer demand has increased since lockdown measures were eased and will continue through until the end of the year. Although August is predicted as a 1.4% annual growth decrease, September is set to rebound with aplomb as we can expect to see almost 5% rises in property values. October is also forecast to rise, possibly the highest increase in property values since the House Price Forecast began in 2013.
Lockdown has resulted in owners and renters looking at their outdoor space and feeling like they need something more, which has moved them onto the property market faster than any other external factor. There’s been unrest in Hong Kong which has resulted in investors looking to move money out of the country and Dubai investors always look to UK property as a safe market, it’s been rather stable since the beginning of COVID-19 which has been pleasing, so there’s growth in all channels.
The Stamp Duty announcement has also moved investors and buyers into the market, with this scheme set to end in March 2021, there are people making their investments now to avoid the stamp duty increase to usual levels after March next year. This means that if you’ve been considering a buy-to-let property, now is the time to act!
Redevelopment around the country continues
While there’s been little press coverage throughout lockdown, the efforts of councils around the UK continue to improve areas. This is pronounced within the North West as Preston continues to improve, along with areas in Manchester. Perhaps rather coincidentally our development at Stretford (The Bank) had some rather uplifting news as it has been confirmed that Stretford Mall (very close to our development) is in line for major regeneration as part of the master-plan for the area. Bruntwood are teaming up with Trafford Council to make the area more attractive for residents and to enhance the practicality of the nearby mall by including more independent retailers, planting trees, and improving accessibility/connectivity to surrounding areas.
This is an exciting development for us, as we’ve recently been redeveloping the old bank building. For investors, this means that the property prices will skyrocket in this area, as nighttime economy will be promoted as well as becoming a much more attractive area for renters to live overall increasing not only yield but eventual property prices. We highly recommend investing before the property prices inevitably go up!
Landlords now need to give tenants 6 months’ notice
Recently integrated legislation now means that landlords need to give tenants 6 months’ notice to seek possession which has increased from the previous 3 months’ notice. This is to provide tenants with more security in the lockdown period and to ensure that there isn’t any unlawful possession from landlords looking to cash in at the tenant’s expense. The aim is to prevent a spike in homelessness for vulnerable tenants who have been adversely affected by the pandemic. There are still circumstances that Landlords can still obtain the property within shorter time frames – 4 weeks in the event of anti-social behaviour for example.
UK Rents have risen everywhere, except London
The average UK rent is now £985 having undergone a rise of 2.1% in August and a further 1.5% on last year. London saw rents decline by 2.1%. This is mainly in part due to demand for rental properties in London declining as commuters who had moved there to work, able to do so from home. This has opened the job market somewhat in terms of remote working, now people are able to get jobs located in London but work remotely, removing the requirement to live in the area.
This new thinking forced by the pandemic has opened the jobs market but also the housing market. No longer does proximity to your role always motivate the location you are to live. Renters now are looking for properties in good areas with affordable rent that they can enjoy fantastic local amenities while not sacrificing their bank balance. London has long been looking at this sort of decline in demand, with investors also looking elsewhere due to capital growth gain in other areas being much more significant.
Speak to us
As we’ve mentioned above, property value is increasing, rental demand is increasing, and Stamp Duty breaks will end in March 2021. As a result, now is the perfect time to invest.
Speak to our team on 01942 251 945 or email us on firstname.lastname@example.org