Constant growth on the cards for UK housing market
Investment in housing has always been a viable option. Whether you’re looking to buy a property and rent it out for income or looking to flip homes for a quicker sum of profit. In the last year or so the market has been pretty consistently upended. Coronavirus put off buyers at first, but due to government schemes, such as the removal of stamp duty, house buying has increased and pushed homes to new levels of cost. But is this constant growth tenable and will there be a flattening of enhanced house prices.
New buyer surge
Those lucky enough to have been able to stay in work throughout the coronavirus pandemic were able to save. It’s not like there was much else to spend the money on. As such, new buyers were able to save up often prohibitive deposits, even though many banks raised these throughout the pandemic. Not only that, but the amount of people building their new houses has increased too, it’s a pretty tough decision to take with a lot of pitfalls but there are some tips to manage your construction project which can really help. The reason for more people building their own homes is due to the inflated nature of house prices. However, this hasn’t stopped most buyers intent on grabbing their set of keys.
Bildet er tatt av Mikes-Photography fra Pixabay
Leveling up continues
Levelling up is the practice of moving from one home to the next. Perhaps you want a bigger garden, or an extra bedroom. Well, a lot of people are doing it at the moment. The primary reason is that people are spending more time at home. They’re working from home, or running their business from home. It means so many workers are looking from that extra space from which to work. Usually this means another bedroom which they can turn into a study. It’s helped drive house prices pretty high as the increase in demand grows. Not only are people working from home at the moment, but it seems like it’ll be a trend which continues due to companies offering more flexibility and realising they can save some money on expensive office space.
Government incentives continue
The housing boom is ongoing, and it looks like constant growth is a given due to governments helping first time buyers even more. For a start, there are more newbuilds going up around the country at an alarming rate offering different styles and standards of homes. At the same time the government has brought back the popular incentive scheme helping homeowners get onto the ladder. It allows them to use just a 5% deposit, instead of the usual 10% or even more. This makes housing more accessible to the masses which will of course continue the growth spiral. With more wanting homes than ever before it’s perfectly natural that house prices should increase in fitting with demand, however, how long this can go on for is anyone’s guess. At some point the market should level out but with demand still there it isn’t easy to tell when this will be.
