Author: Federick Bannerman

UK Property Market 2021 Overview

If you are a real estate investor, or you are thinking about becoming one, you should learn a little bit about the market as it is today. The property market in the UK is booming, and properties are selling for higher values than they have for several years. It is unclear why this is occurring. If you think about it, there are more people having problems financially than ever before. To assume that the cost of real estate would go up during this time makes no logical sense. However, it is a prime time to be a real estate investor if you happen to be in the UK. Here is an overview of the UK property market 2021 prospectus for investors that would like to own real estate.

Why Are Property Values Going Up?

One of the main reasons that property values are going up is that there is a demand for real estate that was simply not there before. Some are making money, regardless of the pandemic, and they have a lot of money to spend. They are looking at this time as a great moment to invest because many people are ready and willing to sell their properties. That being said, this pits more investors against each other, and this can lead to bidding wars. Therefore, if you are going to invest in real estate, although more houses can be purchased, you may pay a much higher price.

Is This A Good Time To Buy Or Not?

From the perspective of an investor that is buying real estate, it’s a good time to make purchases if you have the money. On the other hand, when the market begins to correct, and people go back to work, this could lead to a problematic situation. For example, some of those people that are already behind on their mortgage payments are going to be further behind as the months passed by. This could lead to foreclosures, flooding the market with homes that can be purchased for a very minimal cost. This is something that you will want to consider as you are buying different properties for extremely high prices. You simply have to wager that your investment, as high as it is, is going to maintain that high level of value in the market later on.

How Will Property Values Change In 2021?

Property values, if they do maintain this upward trend, is a very good thing for anyone. For example, if you are a homeowner, the value of your home because of other sales around are going up without you having to do a thing. From the perspective of sellers, this is also a blessing, simply because you are going to get more money than you would have just a year ago. However, this all relies upon the idea that property values will continue to increase. If you are selling your house now, it might be the best time, just like it is for investors.

The UK property market may continue to have this upward trend where home values are going up at a rapid pace. As long as it continues to do so, and the market does not fall out, you are making a wise investment. If it does begin to trend downward, there could be a problematic situation, forcing you to sell your home quickly, or even for a discount or a loss. If you are ready to purchase more homes in the UK, it will likely be a positive decision based on the current market.

Effects Of Covid On Buyers In The Real Estate Market

Effects Of Covid On Buyers In The Real Estate Market.

Corona Virus made 2020 a historic year. The virus went from just existing to being all over the globe. The situation caused chaos and confusion as nobody saw it coming. Every sector of the economy felt the impact. The status became worse as the virus kept spreading and governments had to impose total lockdowns. Staying indoors meant it was not business as usual. One of the sectors that faced the effects of this occurrence was the real estate market. The principal players of this sector are buyers, sellers, and renters. The builders also have a say in the business. Well, out of these four, buyers had it worse than everyone else.

Economic Implications

When the virus came in, most people lost their jobs. Although many employers would have wished to keep their business running, there wasn’t a flow of money. With no salaries, digging deeper into pockets to pay employees wasn’t an option. The only way out was closure. The only money left was what home buyers had saved. Since the future was unpredictable, it was a bad idea to invest in making property purchases. The money was suitable for keeping families afloat. Priorities had to change to buying needs instead of wants. The requirements, in this case, were food and medication, if necessary. Although everyone hoped things would shape up, only the idea of a vaccine would make the situation better. Sellers, therefore, experienced a reduced number of buyers.

Another aspect that has made buyers decide not to invest is the skyrocketing interest rates. The Covid situation spiked a fluctuation in the stock markets. Issues like unemployment caused the situation to worsen. The increasing rates were a discouragement. The peak season of the real estate market usually spring. By this time last year, the problem was worse. Buying a house couldn’t even cross anyone’s mind. The recommended time to buy a home, according to experts, is when the market is steady and rates are low. The situation favors buyers. Investing in such a pandemic means you have to channel some of the money you have saved up to servicing the payments. The risk isn’t something buyers were willing to take. Although there are lenders with a lack of cash flow, the situation becomes tricky. It occurred to buyers they could comfortably stay where they were without any hassles.

Finance

Banks have always worked as the primary source of lending to home buyers. Unfortunately, there was a disruption in business in these institutions. Most of them closed their doors on home buyers. With no operations going on, most customers could not service their loans. Some of the banks had to halt the interest rates, thus reducing income for them. With such a tight operating structure, banks had no money to offer buyers. Therefore, even with employment for the lucky ones, it would not be easy to make purchases. The situation became overwhelming, leaving most buyers frustrated, thus opting to settle in their current locations.

Homebuyers have had the roughest ride ever since Covid came. However, real estate gurus say there’s light at the end of the tunnel. Hopefully, the situation will ease, and more buyers can proceed to make investments.

Welcome Back to Real Estate Investing

Real Estate Made…..Easier

As we move into 2021, the real estate marketing is shifting in one direction many would not have expected.

The real estate markets across the globe are staying strong despite the global pandemic due to Covid-19.

Hopefully, when you read this blog you will gain a little more understanding as to why this is happening and how you can make 2021 your year for investing with confidence into the real estate sector around the world. We look forward to sharing our journey with you and hearing about your success along the way also.

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