Profit From Property Investment in 2021
After a tumultuous year in the global markets due to Coronavirus, the UK property market has remained relatively stable. House sales boomed due to the reduction in SDLT and the stay-at-home rules meant that many homeowners had more money to invest in home improvements and house renovations, increasing the value of properties. With an increased number of people working from home, some buyers opted to leave the UK’s cities for the countryside, releasing equity and purchasing properties with bigger footprints.
These property trends are set to continue at least for the first half of 2021 due to the shift in office working to WFT, the extension of the SDLT cut at the last budget and the introduction of a new government scheme that enables mortgage lenders to offer loans up to 95% of the value of a property. This means homebuyers will be able to purchase properties worth up to £600,000 with just a 5% mortgage. Both first-time buyers and existing homeowners can take advantage of this new government-backed offering.
All of this means there are some exciting opportunities for property investors and those looking to potentially sell properties in their portfolio. Demand is continuing to go through the roof and will most likely remain in positive territory until the summer of 2021. While it’s unlikely we’ll repeat the success of the 2020 market there are certainly reasons to be cheerful if you’re a property owner or investor.
In terms of actual house values, according to the UK House Price Index for January 2021, January data shows, on average, house prices in England have fallen by 0.6% since December 2020. The annual price rise of 7.5% takes the average property value to £266,532.
House price growth was strongest in the North West where prices increased by 12% in the year to January 2021. The lowest annual growth was in the West Midlands, where prices increased by 4.7% in the year to January 2021.
In London, average house prices rose by 0.1% since December 2020. An annual price rise of 5.3% now takes the average London property value to £501,320.
In Wales house prices fell 1.9% between December 2020 and January 2021 and rose 9.6% annually, taking the average property value to £178,907.
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