It is indisputable that there was a slight dip in the market at the outset of the pandemic, largely caused as a result of the uncertainty that followed. This was not surprising, especially considering that most businesses were brought to a sudden halt, people were forced to work from home and the whole country went into isolation.
Naturally, it took a while for businesses to figure ways of operating from home, adapting and upgrading their processes, and changing their business to allow accessibility to consumers from their homes. Estate Agents made virtual viewings, and the opening of their business resulted in a quick and healthy bounce back in the market.
The Stamp Duty holiday clearly contributed massively to the boost in the property market. Not only was this a big help for first-time buyers and gave a huge incentive to buy, but this also benefitted those looking to invest in property with the reduced surcharges. I had many Commercial clients start portfolios of residential properties just to take advantage of the savings, and the rise in the market.
In the recent National Statistics released by the HMRC, on the UK property market, it showed that house sales in October 2021 were lower by an estimated 52% than September 2021. With the end of the extended Stamp Duty holiday there was bound to be a noticeable decrease. The decline in sales however doesn’t seem to have impacted house prices which appear to have risen, adding approximately 0.9% to the average cost of a home. Foreign investment into the UK remained active with a marginal increase in sales of an estimated 1.0% from September 2021. It would be an understatement to say that the last couple of months have been busy. Activity from our clients has definitely increased in the market with new developments also on the rise. The Commercial Property market is also going strong. Whilst those in the UK became cautious, overseas investors took advantage of the opportunities and I believe that helped keep the market buoyant.
Furthermore, a common trend was that people had the opportunity to start up their own businesses, online and from home, which they are now moving to commercial premises– many of which have grown to be successful despite the setbacks or limitations. Our Commercial Property team has been involved in helping make this happen with us acting for commercial purchases and leases.
The appetite for investors and buyers is obviously there and whilst residential sales has declined from previous month, it is bound to bounce back. The market remains positive and we are busier than ever assisting our clients build their portfolios and buy their dream homes.
For anyone looking to begin their journey in property investment or build on what they already have, Axiom DWFM can offer a range of services and advice to assist.