To say the last 12 months have been positive for the UK property market would be an understatement. Despite a global pandemic crippling many industries and sectors, the UK property market is one of the only industries to have seen an increase in demand and values over the year.
Over this period, the property market’s success is attributed to several factors, including record-low interest rates, higher disposable incomes due to the nationwide work-from-home message, and a re-evaluation of where and how people want to live. Consequently, the cost of borrowing has now become more affordable than ever, and people have managed to save up for a property. However, none of these factors seems to have been as significant as the Stamp Duty Land Tax holiday (SDLT).
Initially introduced in July 2020 to prevent the property market from stalling and incentivise people to keep moving, it is estimated that nearly 104,000 residential property transactions have since occurred each month across the UK since the Government introduced the tax break. This is a staggering increase of 22% against the previous 12 months leading up to March 2020, when the pandemic first started to take hold in the UK.
Whilst this increase in demand would be brilliant news on its own for the UK property market, the SDLT holiday has also caused the largest growth in house prices for the past decade, with prices in England increasing by up to 7%. The biggest impact of this growth has yet again been felt in the regions, where house prices in crucial investment hotspots like Manchester continue to outperform the national average, with rental demand also showing no signs of slowing down.
Another essential factor to highlight in the juxtaposition between the property market and other investment assets is the increase in traditional investors who have turned their attention to property over the past year. With millions wiped off the stock market and minimal returns on long-term saving accounts and ISAs, people who would have previously put their money into traditional assets are increasingly taking advantage of the property market. With evidential record growth in asset value and yields more than 6% in some key areas, putting capital into property is the obvious secure choice given the current economic climate.
So, in a market that is going from strength to strength, where can the biggest wins be made? To help investors navigate this and make the right decisions when it comes to long-term investment success, we have created a 2021 Property Investment Guide, which you can download for free from our website by clicking here.
As one of the UK’s leading residential property developers and operators for the last 20 years, we have seen first-hand the positive impact that the SDLT holiday and record-low borrowing has meant for the property market and our investors – with one recent investor saving over £25,000 on a purchase in our flagship Ancoats Garden development.
If you are interested in investing in property – either as a first-time property investor or as someone with an established portfolio, then get in touch with us today, and let us help you capitalise on the security and stability of the current market.