New findings show that the UK’s property market has continued to perform well. Especially following the easing of lockdown restrictions due to the coronavirus pandemic.
High levels of activity
Data from the Royal Institution of Chartered Surveyors (RICS) reports that activity in the country’s housing market remained high throughout August. Increasing numbers of renters, owner-occupiers and buyers looking to invest in property have ensured the market avoids the crash that was feared at the beginning of lockdown.
63% of respondents to the RICS August UK Residential Survey said they saw an increase in the number of people interested in buying a property. August was also the third month in a row that the number of sales completed rose, with 61% of those questioned describing an increase in new sales agreed.
Seller confidence has also been rising. A net balance of +46% of respondents to the survey reported more properties listed for sale over August.
Stamp duty effect
The current stamp duty holiday is likely to have had a positive influence on the housing market. The removal of stamp duty land tax (SDLT) on all purchases up to £500,000 kick-started activity in the market when it reopened at the beginning of June.
With purchases of second properties under £500,000 now only required to pay a 3% second home surcharge, now is a fantastic opportunity to invest in property.
Rising property prices
The huge surge in demand has had a positive effect on property prices. Price growth is happening across all regions in the UK apart from London.
Manchester and Leeds saw the strongest property price growth in the last three months at 4.2% and 3.9% respectively. Other northern cities such as Liverpool (3.4% growth) and Sheffield (3% growth) also performed above the UK average of 2.6%.
For the best capital gains when investing in property, these are the regions to consider.
The RICS survey also found some interesting trends that had begun to emerge following lockdown. UK buyers and tenants now increasingly demand properties with gardens or easy access to green space.
With 83% of surveyors predicting properties with a garden will be in high demand over the next two years, and 79% stating the same for properties near green space, these are factors that should be considered when choosing to invest in property.
To find out more about investing in property, contact North Property Group today.