After everything that happened last year, 2020 turned out to be a fantastic year for the UK’s property market. Not even a global pandemic could slow down the massive price increases brought about by unforeseen demand across the country. And 2021 doesn’t look to be different. If you haven’t already, there is no better time to buy an investment property than in the next 12 months.
No slowing down
Even starting the new year with another national lockdown couldn’t slow the UK’s property market. People are still as keen to buy and sell property as in 2020. This is evident by Rightmove recording a 30% year-on-year increase in visits in the first Saturday to Wednesday of 2021.
The property portal also recorded a 22% increase of people contacting estate agents about rental properties. And there was an 11% increase in enquiries about properties for sale.
Tim Bannister, Rightmove’s Director of Property, said, “We didn’t know how this year would start with so much change and uncertainty around restrictions, but it’s been reassuring for those people hoping or needing to move that the demand we’ve seen so far is the highest we’ve ever had in January.”
Good forecasts for the build-to-rent sector
An industry that is set to have a great 2021 is the build-to-rent sector, which is great news for people planning on buying an investment property this year. Although purpose-built build-to-rent housing is only a recent concept, it has proved in high demand from investors.
In Q3 2020 there were 37,000 units under construction and around 84,000 in the pipeline in the UK. By the end of 2021 there will be 90,000 in the planning stage. This shows the rapid growth and potential of this market.
More developers are changing their business models towards build-to-rent and focusing ever more on projects in the north, where the best returns can be made. With this in mind, there has never been more choice when buying an investment property in the thriving northern markets.
Changing residential needs
As well as strong house price growth, the recent lockdowns have had another impact on the UK’s property market. Demand for properties with more space and access to outside areas has risen in both the rental and owner-occupier markets.
Within the rental market, this has led to higher rents and greater yields in some of the most popular cities for tenants, such as Manchester, Liverpool and Leeds. As there is still a huge desire for city-centre living, people buying an investment property in 2021 should focus on spacious properties with excellent amenities in these key northern locations.
If you’d like to know more about what 2021 holds for the housing market and how to buy an investment property this year, get in touch with our friendly, professional team today.