The property market has returned with a vengeance and no prospect of lockdowns returning in full force anytime soon. Could now be the time to buy a home?
The housing market is certainly hot, with plenty of proof to back it up – despite the fact that statistics have been boosted by the rush to take advantage of the stamp duty holiday, which ended in October.
In the United Kingdom, according to HM Revenue and Customs, 160,950 residences were sold in September 2018, which was almost 70% higher than in August and 68 percent greater than the previous September.
When compared to the 50% downturn in sales that occurred in April and May 2020 due to the epidemic, it is obvious that Covid has been left in the dust.
Zoopla has predicted that 2021 will be the year with the most activity in the housing market since 2007, with £500 billion worth of purchases.
With the stamp duty holiday now over, the housing market is expected to slow and price growth to plummet, making now an excellent time to buy property.
Investors are showing up in force just as the market appears to be slowing down before further growth, buying property left, right and centre after taking a rest throughout the pandemic.
The economic climate appears to be shifting from a seller’s market to a buyer’s market.
What does this mean for rental?
Rent increases have been the fastest in a decade or more in every area of the UK except London, according to Zoopla data.
The increase in population will lead to a rise in demand for housing, which will result in rent price increases. By the end of 2021, according to predictions, rents will be around £500 more per year than today.
Over the next year, rental property demand is anticipated to increase across the country.
People attempted to keep their homes when lockdowns occurred, and with evictions made temporarily impossible, tenants rarely moved.
Now, as the economy continues to improve, more and more renters will begin seeking a new place to live.
A spike in demand may be the ideal scenario for houses in multiple occupation (HMO) property investment, especially if interest rates stay low.
HMOs have the capacity to easily absorb any increase in demand because they may contain numerous separate tenants into a single property.
They could be a smart investment, especially if you combine them with a rise in rents and the reproductive boom HMOs provide.
If you’re thinking of investing in high yielding HMO properties and want expert help on how to run a successful tenancy, please contact Mistoria Group to find out more, or visit their website to locate your local branch.
We handle 1000 homes and 3000 tenancies in the private and student housing markets, so we can assist you with all phases of property management.