Ditch London; there are cheaper Buy-To-Let (BTL) options in other UK cities.
The rapid spread of the virus has disrupted financial markets around the world. In the property sector, however, the
fallout has not been as damaging as some commentators predicted. In fact, demand among homebuyers has increased, while investors continue to look towards bricks and mortar with great interest.
The UK’s implementation of the stamp duty land tax (SDLT) holiday has evidently played a significant role in sparking life back into the property market after months of lying dormant during the lockdown period between March and July. The holiday means buyers are exempt from paying the tax on the first £500,000 on all properties in England and Northern Ireland. This exemption also applies to buy-to-let (BTL) purchases.
Over recent months, both house prices and transactional activity have been rising sharply. Halifax’s September house price index showed that, even in the midst of the ongoing pandemic, house prices had increased by over 7% year-on- year. Furthermore, a recent survey by the Royal Institute of Charted Surveyors revealed that the UK is now experiencing an 18-year-high in the rate of house price growth.
Prices are growing, and transactions are taking place at an increased rate; yet, evidence suggests that buyers and renters are now seeking properties in different areas and with different qualities.
Firstly, homebuyers and renters are looking for more space from their property. More confined to their homes – including working remotely on a part-time or full-time basis – there has been a marked rise in the number of people seeking properties with additional space, or a spare bedroom, that can be used as a home office. Similarly, people are also eager for properties with outdoor space.