Both buyers and sellers have been dealing with an unpredictable real estate market all around the world. In the UK, the expected discontinuation of the stamp duty holiday and the uncertainty of Covid-19 will leave most buyers, sellers, and real estate agents unsure about the housing market’s future. The estate agents in Wolverhampton and property professionals across the area predict the future of the UK’s housing market. However, if you’re looking to buy a new home in 2021, here are the four most essential things that you need to know about the housing market in the UK!
A total change in the home viewing process
Gone are the days when buyers would attend open houses and visit property after property to find the perfect home. Now, online viewings and virtual viewings are the things of the future. Buyers have the comfort of viewing properties virtually through live videos or through virtual tours. Once potential buyers have shortlisted a few properties they like, they can arrange house viewing visits for the same. This trend started during the Covid-19 pandemic, but it will become the future of real estate viewing. So, if you’re thinking about buying a new house in 2021, get ready to start looking at properties virtually.
First-time buyers and homeowners will continue moving to the outskirts
During the lockdown, no one looked at properties that did not have outdoor space. Since these properties were not available in central cities, homeowners and first-time buyers started looking at properties on the outskirts. In most suburban areas, the properties are spacious, more affordable, and they come with gardens, terraces and parking spaces. Of course, who wouldn’t want to own a bigger and better home, especially when they have to work from home? Experts predict that this trend will continue in the near future, which is why the demand for housing in suburban areas and boroughs in and around the UK will continue to rise in 2021.
Increase in the price of homes in the suburbs
In 2020, we saw a slight dip in the prices of real estate in city centres. According to Halifax, prices fell as much as 1.5 per cent in some boroughs of London. As more and more people start moving to the suburbs, it is expected that there will be a modest increase in the prices of homes in those areas. Thanks to the great transport links in the UK, it is effortless for the people living in the suburbs and boroughs to commute to work, go to school, and even get to the city centre. Most people would prefer to buy a bigger home in the suburbs and spend a few minutes commuting instead of owning a smaller home in the city centre. Because of this change in mindset, there will be an increase in demand for housing in the suburbs, which will then lead to a rise in price.
Buy to let and let to let will become even more common
Buy to let is when investors buy property in order to rent it out and earn some income. Let to let is when homeowners give out their properties on rent and move into bigger homes which they take on rent. In 2021, it is predicted that there will be an increase in lettings and sales of buy to let properties. Homeowners who have properties in the city prefer to put those properties on rent and move into bigger homes in the outskirts where they have home offices, parking spaces and private gardens. However, young professionals and entrepreneurs looking to live in the city centre are choosing to live as tenants instead of spending a lump sum just to own a small house in the city. As the cycle continues, let to let properties will continue to dominate the housing market in 2021.