As we have documented in previous blog posts, the UK property market has experienced significant shifts over the past 18 months. From being put on hold in March 2020 to the Chancellor of the Exchequer, Rishi Sunak’s stamp duty holiday, UK property appears to be moving in a positive direction with buyer demand strong and construction output above pre-pandemic levels.
As we progress into Q3 2021, research shows that there has been significant growth in both the buyer and rental markets, which is promising for property investors.
Below, we have outlined three of the main trends emerging in the UK property market at the moment.
More decisive buyers
Outdoor space and home offices are among the most popular ‘must have’ property features in today’s market, but research commissioned by U-See Homes suggests that buyers are more decisive following the pandemic too.
In the past six months, 51% of homebuyers took 30 minutes or less to make a decision on a property, and a further 41% of people took no more than an hour. With limits in housing supply, this data suggests buyers are aware they have to move quickly in order to secure their preferred property.
UK house prices up 10.7%
With increased activity within the UK property market, house prices increased by 10.7% year-on-year for former owner-occupiers in May 2021. The Office for National Statistics also found that first time buyers were also paying 9.5% more than in May 2020.
Many experts are attributing this rise due to the stamp duty holiday, with buyers eager to complete purchases before the 30 June tax relief deadline. However, as we revealed in a previous blog post, spending more time in their homes than ever before in 2020 has encouraged people to find their dream home, and these statistics show that they are willing to pay more for it.
Rental rises in commuter and coastal towns
A recent survey by property portal, Rightmove, has shown that commuter and coastal locations have seen the greatest rent increases over the past year. For instance, rents in Rochdale (32.7%), Folkestone (26.7%) and Farnham (19.8%) have seen the biggest annual changes.
This shows the prioritisation of outdoor space, while still having a need for strong transport links, which means renters’ demands are echoing those of buyers. Our development portfolio is centred around commuter hubs, with our Brighton Marina project also offering coastal living. This is positive news for property investors with assets in these areas, as it shows that demand is strong and rental yields are high.
GRE Assets has been delivering high quality, well connected homes in the UK and Spain since 2006.Date: 20 July 2021