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Positive news for all, as we end the year with the announcement of a mass rollout of the COVID19 vaccine. With the tightening restrictions, the performance of many businesses declines. Causing a great economic downturn. Despite the lockdown and stricter regulations, the UK property sector managed to remain afloat. The property market is showing positive signs of resilience and continued growth. This is evident with an average price increase of 4.7% in UK house prices. Regions including North West are seeing a growth of 6%. Therefore, investors who ventured into the market early this year are seeing great rental yields.
The rollout of the vaccine began in the UK last week. Prioritising, healthcare workers, those living in care homes and the elderly. The results are looking promising with no serious side effects reported during Pfizer’s clinical trials. If the rollout is successful, the market can expect to see an increase in productivity. This will continue beyond March and the stamp duty holiday deadline.
The stamp duty holiday ends on 31 March. The surge in sales will steady as the sector heads into April 2021. Amid the pandemic, the vaccinations will help sustain the market beyond this deadline.
Savills surveyed over 1300 prospective buyers and sellers during the second UK lockdown. From the respondents, 13% said a vaccine would increase their commitment to moving in the next 3 months. For 67% of participants, the lockdown had no impact on their plans to move in the next year. In addition, 17% said it made them even more committed to relocating. Following the announcement of the vaccine, Lloyds Bank Recovery Tracker reported 43% of real estate firms predicted an increase in output, in the coming year. This figure is up from a third in October.
There has been a significant rise in the number of people looking to relocate and invest in properties. There are a number of factors behind this, including low-level interest rates. The average interest rate on a 30-year fixed mortgage fell to a record low of 2.88% in August. This marks the lowest level in over 50 years. As a result, a higher number of people are securing mortgages.
Construction to Pick Up the Pace
Earlier this year, the construction sector faced many disruptions as sites were forced to shut down. As the vaccine is introduced across the UK, social distancing measures may be relaxed, this will result in more workers allowed back on sites to continue construction. Consequently, properties can be delivered at a faster rate.
The market has made its statement this year. It is evident property investment will become a staple for many as it has proved to be the safest venture, in comparison to traditional stock and market shares. To discuss your next investment, speak to one of our experts now.
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