The Property Market Situation In UK
There’s no doubt that the property market is a major factor in the UK economy, due to its prevalence in daily life.
However, in recent years there has been a massive shift in the way people choose to live and where they choose to live. People are now looking for convenience when it comes to housing rather than long term security, meaning that the traditional three-bedroom semi-detached house is slowly becoming a thing of the past.
The UK property market now consists of many different types of properties – flats, town houses, terraced houses, detached homes and bungalows are all now available to buy or rent, meaning people can choose exactly what they are looking for in their home.
However, buying a property in the UK doesn’t just mean setting out to find somewhere you can afford and then settling down with your new home – it also means having to choose between renting or buying, with both options boasting their own benefits.
The rise of living alone has meant that there is more of a demand for smaller properties such as flats and town houses. Some flat complexes in the UK can even include facilities such as a gym, communal lounge area and secure parking, making the price of rent worthwhile. Town houses are also popular due to their proximity to shops and other amenities.
As these types of properties tend to attract more young professionals than older families, they can often be found in more metropolitan areas. This means that there is a correlation between the location and property choice – for example, flats within city centres tend to be smaller and cheaper than those on the outskirts of cities.
Families are still looking for security above all else so they will often opt to buy a home with at least three bedrooms as well as off road parking so they can have several cars. It’s not just where people choose to live that has changed either – the way in which they pay is also evolving. Renting used to be a more popular choice – for example, around 40% of all homes are rented rather than owned these days, however it is becoming increasingly difficult to find rental properties in locations where people will want to live.
This means that buying is the more favourable choice – houses are at their cheapest right now and mortgages are also available for those with small deposits. The demand for homes has grown steadily over the last few years which has caused housing development to outgrow construction, meaning there is an abundance of residential properties in the UK.
Before buying, it is important to consider all your options carefully including renting or buying, where you want to live and what type of property you’re after.
If you’re still unsure about what’s right for you, finding a good estate agent might be the best place to start in order to help direct the search process.
The UK property market is currently experiencing a slowdown.
While the market has slowed, first-time buyers are still able to purchase a property. However, first-time buyers need to plan for their future budget carefully to afford their new home on a one-income household income. The UK property market is so extensive and diverse that it’s possible to broaden your search and find something suitable.
Before purchasing a property, it is advised that you begin looking for your new home before your current contract expires. This means that you won’t have to worry about finding somewhere temporary to live while working. Ensure that there are enough funds in the bank so that if the purchase falls through, you will not lose both your deposit and your solicitor fees.
How is the property market likely to change?
The government has stated that they are committed to helping first-time buyers to encourage homeownership, which was the original intention of the UK property market. The government has tried to smooth the market, but things are only likely to worsen before they get better.
As interest rates rise, demand will begin to drop off, and this will send prices tumbling. Due to its size and diversity, the UK property market is particularly volatile, so there is always room for prices to drop further.
Buying a property is the most significant investment that most people will make in their lives, so it’s hard not to get carried away with excitement and overlooking essential facts. For example, if you are buying a flat or a house, it’s worth remembering that your monthly rent also includes costs such as buildings insurance and ground rent (if applicable).
Property is an attractive investment, but the UK property market is not always easy to navigate. You can protect your initial deposit by taking out purchase protection insurance, which is sold alongside legal protection top-up top-ups.
What is the impact of Covid-19 on home values?
As the global economy continues to recover, Covid-19 has started to falter. The unemployment rate in Britain is increasing and consumer confidence is low. However, this economic instability has not yet reached the housing market.
House values are constantly increasing (with a recent slowdown of 2.5% month on month). This means that homeowners who have been considering selling their homes may be better off waiting a few months now before putting the home on the market – they could potentially see an increased return.
In contrast, those who are looking to purchase a new home should do so as soon as possible. Demand is increasing and is expected to grow even further in the month of May. If you wait too long, you may miss out on the opportunity to purchase a new home at a low price.
In conclusion, Covid-19’s recent downturn has not yet reached the housing market and homeowners may want to wait a few months before putting their home on the market. However, those looking for a new home should move quickly as demand is increasing.
You May Also Enjoy
Thames Valley Rents Surge to £1,448 – 6% Above UK Average
July’s HMRC Property Transactions Report
Almost half of homesellers hit by broken chains
Only 1 in 10 new-build homebuyers happy
One-third of tenant income in the UK goes on rent
