The UK Property Market – A Perfect Storm
The UK Property Market has continued to defy predictions. Early on in the year 2020, there were predictions of a property slow down if not an outright burst but the market remains robust buoyed up by a number of government initiatives such as the various loans and support rolled out to businesses, the stamp duty holiday on properties up to £500,000 until March 2021 and the furlough scheme which supports employers by paying the salaries of some of their staff up to 80% in value.
The furlough scheme was meant to come to an end on October 31st and thereafter the actual effect of the economic disruptions in 2020 on the property would have come into sharp focus. Things however remain unclear. With the coming of winter, the season of respiratory diseases, the cases of Covid again started to rise and the government was forced to impose another lockdown albeit less stringent than the lockdown in March 2020. This is, however, a double whammy for businesses especially retail and hospitality who were looking to the seasonal Christmas period to try and recoup some of the losses of the year.
The question is whether the property market which follows the trend of the economy can overcome these challenges. Despite the governments best efforts, unemployment will slowly creep up and buyer confidence will drop. In addition, both the stamp duty holiday and the Furlough Scheme are set to end in March 2021. All of these events would put further pressure on the housing market.
But is it all doom and gloom? The housing market whether it goes up or down creates opportunities for different types of buyers. In a down market when prices are low and there are deals to be made, it creates a perfect storm for the Investor.
Be aware that the UK property market is an international market drawing interest not only from domestic investors but international investors as well, from Africa, the Middle East and Russia to name a few. Properties of interest range from single residential properties to blocks of flats and commercial property.