The United Kingdom is one of the most affected countries not only in Europe, but also in the world. Nevertheless, the first positive messages from the medical services gave impetus to the majority of industries that were frozen for the time of quarantine. The real estate market returns to pre-crisis level faster than other industries.
May 13 was the first day of easing of restrictions when the country’s main real estate portal traffics and views have increased, states the Rightmove website statistic. Moreover, it exceeded last year’s index up to 4%. During following week there were several more positive changes:
— Compared to last week the number of new properties objects increased by 111%.
— Customers demand was only 10% lower than last year’s index for the same period.
— Rent demand for the same few days has recovered to the level of September 2019.
According to the experts, the full real estate market recovery will take several months rather than weeks. In the best-case scenario, the British real estate market will reach pre-crisis levels by the autumn.
Pay attention and purchase real estate
Meetings in «offline» to evaluate a future object purchase or rent in person are already allowed, but the distance and disinfection rules still remain. If one of the realtor partners or potential buyer is currently sick with coronavirus, or has symptoms, or belongs to the risk category, the meeting will not take place. In case everything is going well, then you need to wear masks, gloves, use disinfectants and keep a distance at the meeting.
Real estate objects on the market are at the top
Due to the fact that transactions have almost completely stopped for a few weeks, first of all, those that have been «at a stop» since pre-pandemic times will be closed. This applies to all types of sales, rentals, exchanges, etc. Therefore, if you decide to sell, buy, lease or rent, be prepared for delays.
Credit holidays and other advantages
On May 21, the 3-month mortgage payment freeze period was extended on October 31, 2020. This means that buyers, regardless of the form of purchase, residential property or buy-to-let (for renting), have the right not to make mortgage payments without any sanctions from creditors. You can apply for a financial holidays on the lender’s website.
According to another major real estate portal Zoopla, to restore economic activity in the housing market quickly, the government is considering temporarily stamp tax cancellation. In case it happens, the cost of purchasing a property that will be worth more than 250 thousand pounds, which are most of the objects in London, will become much more profitable. For example, the calculation of buying a home in London benefits, that stands at average cost of £671 989 in May 2020.
If a non-resident who owns a property in other country purchase such a property with the savings about £43 759. Meanwhile, the stamp tax has not been cancelled, but the professional services are waiting for certain actions.
Lastly, the vast majority of experts expect prices to fall this year. Housing objects can fall in price from 3% to 5%. However, everyone is predicting cost growth next year. It means that 2020, with the current situation, even if the stamp duty remains at the same level – is a great opportunity to buy property profitably. From the next year you can sell it. Obviously, with regard to the many regional nuances and the situation.
In case you are considering British real estate as your investment path, purchasing an object now can turn into a highly liquid holdings.
