The UK Property Market Trends To Be Aware Of In 2020
The UK property market is in a very peculiar position right now. Everything has effectively been frozen due to the coronavirus outbreak. When the outbreak first started, we saw a few significant economic benefits for property investors. Namely, the government introduced incredibly low interest rates. This allowed for more affordable and more accessible mortgages, giving people a chance to get on the property ladder.
However, the situation has changed very rapidly. Right now, the government has urged people to stop buying and selling homes as it’s too risky and involves too much human contact. So, you have to sit back and focus on other areas of property investment until everything gets back to normal. One thing you can spend a lot of time doing is looking at the UK property market trends for 2020 and beyond. What things have we seen grow in popularity over the last 12 months, and what can we expect to see in the future? Let’s dive in and take a look.
Currently, all new homes in the UK need to meet certain energy efficiency standards. This is a trend that’s grown a lot in the last decade as the industry looks to combat the large carbon footprint it creates with all this home construction. Houses are being built to conserve more energy and reduce carbon emissions.
Not only that, but the demand for energy-efficient housing is higher than ever before. In fact, it’s seen as a potential USP for anyone eager to buy a home. Thus, this is a trend that property developers are jumping on and can take advantage of. If you’re looking for ways to boost the value of your property, then adding some energy-efficient technology is a great place to start. Including solar panels on roofing can increase the value and appeal, for example.
Alternative selling methods
There has been a slight trend that’s seen sellers decide to sell their properties without dealing with estate agents. You’ve all probably seen the adverts for things like this on TV, but does it represent the future of the UK property market? The short answer is no, an estate agent is still the number one way to sell a home. It’s still the best way of getting as much money as possible, regardless of what others may have you believe.
However, we can say that there’s a move towards more alternative selling methods. Specifically, real estate agents are altering the way they do business. COVID-19 has helped in some effect as a lot of companies are working remotely and offering remote property inspections, video calls with clients, and so on. Could we see a world where all property transactions are handled digitally in the future? It’s certainly possible.
Lower house prices
Everyone’s ears always prick up at the mention of lower house prices. The UK property market had been picking up until the coronavirus took hold of things. Now, it’s predicted that we could see a drop in prices by around 3% this year. This might not seem like much, but the same article that revealed that also said that the prices will bounce back by 5% in 2021. Effectively, we’ve got the perfect conditions for investors to make a bit of money.
If you take advantage of the dip that will follow COVID-19, then you can pick a property up at a discounted price. In turn, you can wait until prices start to rise again, then sell the home for a sizeable profit. It’s investment 101 – buy low, sell high. What you should also consider is that the price drop percentage is based on an estimation of the current situation. Nobody really knows how long everything will be frozen for. Initial reports said three weeks, but some are saying this could go on for as long as six months. This sounds terrible, but you can take some comfort in the fact that the longer this goes on, the more the house prices will drop.
Following trends is always a smart idea to learn more about the property market. As an investor or homebuyer, you should be aware of what lies ahead of you. One of the cleverest ways to make money on the property market is to react to the trends. Right now, you can spend some of your spare time developing your properties and boosting the value as much as you can. Focus on energy efficiency and continue marketing the property with videos and images. When things start clearing up, and you’re free to buy property again, then take advantage of the dip in prices to snag a bargain.