Local residents and expats from around the world wish to live in the UK. The United Kingdom takes the top place in the world economy with the best and one of the thriving businesses in the country. Living in the UK is the most beautiful experience, where a variety of cultures, traditions and people can be seen here. The neighbourhoods of London and the UK are very welcoming and make people crave this lifestyle. There was an evident change in the property market during the 2019 pandemic, where the sales were deliberately cut, and this affected the nation’s economy.
People usually love enjoying city life in the UK. With transport facilities, healthcare, schools and other requirements in the vicinity, living in this country is easier for people now. However, the demand for homes in the countryside spiked up after the covid outbreak. The collective preference of people shifted rapidly towards bigger homes that come with gardens and backyards. For a long time now, it has been the seller’s market, which will continue throughout 2022. With many houses to rent in Buckingham and the neighbouring counties, investing in properties has been beneficial for people in recent times. Either people occupy the home or look for more buy-to-let properties. The current changes that have taken place in the property market will prevail for a longer time before it gets back to its normal state.
SOME ASPECTS THAT INFLUENCE THE OVERALL PROPERTY MARKET IN THE UK
PERCENTAGE OF DEMAND OVER SUPPLY
The demand for pre-owned and new properties skyrocketed in recent years due to various factors. The extension of the stamp duty in 2021 saw buyers from different parts of the country and abroad. Despite the escalating prices and never-ending competition in the property market, people bid higher for their ideal homes. However, the homeowner sells it to the person quoting the highest price among many other offers for their home. This pattern of buying and selling increased the demand which outnumbered the supply of properties in the UK. Not many properties are available at the moment for sale, and will continue for a while in 2022.
END OF STAMP DUTY HOLIDAY
Every property buyer in the UK is subjected to pay a small percentage of their total property value as a stamp duty, which is a type of property tax to be paid only once. When the country saw a severe economic tumble in 2019, the government planned to exempt people from these taxes and declared a stamp duty holiday in June 2020 which was extended till July 2021. During this period, people needn’t pay stamp duty for properties priced under £500,000. Most people made use of this phase and hurried into investing in UK households. Once this stamp duty was brought back at the time, where property prices shot up, people started stepping back.
CHANGE IN PREFERENCES
People have evolved in many aspects over the years. The UK is home to varied property types like Edwardian, Georgian and Victorian townhouses, semi-detached and detached homes, modern flats and studio apartments. Previously, people would pick homes according to their budget and availability of basic nearby amenities. After the year-long lockdown in the UK, people are used to working from the comfort of their homes. Returning back to normalcy has made people look for bigger homes, with dedicated outdoor space and a home office. They are now looking for better properties despite the heavy budget. This scenario has led to more sales in the last two years, and the number of properties available now has dropped down.
INCREASE IN SINGLE RESIDENTS
One of the main reasons for the unavailability of homes for sale in recent times is the imbalance caused due to single households over families. People and their way of living have changed over the years. Unlike previously, they have started earning at an early age and are moving out to live independently. This is causing a crunch in the property market and the number of properties is declining abruptly. Demographic factors like life expectancies, increased rates of divorces and more also cause an impact on this condition.
Mortgage loans are the best way to purchase a property in the UK. However, the loan-to-value rate is decreasing along with the interest rates. This might also be a reason for people to back off from making a purchase in recent times. The recent reassessment of homes, where residents are moving to bigger homes irrespective of the location. This shift has left smaller properties, which are not preferred by many in the city and the suburbs as well. The uncertainties of new homes entering the market are very high. It will take a while for this imbalance to settle. Till then, the property market will be on the brink and remain unpredictable.
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