Have you been thinking about buying a new house in 2021? Are you wondering if this is a good time to invest in real estate? Well, that is a question that has been on everyone real estate agent, property investor and potential homeowners mind! With the uncertainty around the world due to Covid-19, no one knows what the future holds. While some experts believe that real estate prices may fall in 2021, some believe that there might be a slight increase in prices. Of course, there are a few who say that the costs of real estate in the UK will remain relatively stable. From estate agents in Coventry to estate agents in Leamington Spa, we spoke to them, and this is what the experts have to say.
The impact of the Covid-19 vaccine
Experts feel that the rollout of the Covid-19 vaccine has allowed things to sail smoothly for a while. There has been a boost in buyer confidence and a boost in the overall confidence around the world. On a positive note, things are getting back on track at a much quicker pace than expected. This means we could see a sudden increase in demand for real estate – a trend that’s significantly more in the up and coming boroughs and smaller cities and has become very popular among new homeowners and younger professionals since the past few months.
2021 will most likely be a buyer’s market
Due to the limited demand and consistent supply of real estate, it is expected that 2021 will be a buyer’s market. This means that buyers will be able to get great deals and buy properties at discounted prices because sellers will have no choice but to negotiate and settle for prices below the asking price. Since the demand for real estate is pretty low due to the uncertainty of what the future holds, buyers will have the upper hand in real estate transactions. In fact, with the combination of stamp duty holiday and a decrease in demand, buyers will be able to purchase properties in prime locations and prime real estate for discounted prices! So, if you’ve been thinking about buying property soon, you might want to start getting in touch with estate agents in Nuneaton and Coventry to help you find the best deals possible.
Stamp duty holiday led to a boost in sales
Stamp duty holiday, which is basically a temporary suspension of stamp duty on real estate was a great move by the UK government. Buyers no longer needed to pay stamp duty on properties under £500,000, saving buyers almost £15,000 on their purchase! This led to an increase in the demand for properties where a whopping 650,000 properties changed hands according to Rightmove. While some experts believe that there will be a drastic fall in prices, by at least 2 per cent to 5 per cent, once stamp duty holiday ends in March, some believe that the UK government might extend the stamp duty holiday in order to boost the real estate market. Keeping in mind that the suspension of the stamp duty holiday has saved buyers and real estate investors a whole lot of money, it is advisable to make the most of this lucrative scheme and buy property in 2021.
Attractive mortgage rates are a big plus
While getting pre-approved for a mortgage has become difficult due to Covid-19, the silver lining is that interest rates have significantly reduced. It is expected that the rate of interest will be low for the foreseeable future because the government is using low-interest rates as an incentive for buyers to invest in real estate. Lower interest rates increase the buyer’s confidence and also help save a lot of money in the long run. So, for potential buyers who are thinking about investing in property in the near future, it is highly advisable to make the most of these low rates of interest while they can.
Increase in demand for buy to let properties like never before
There has been a significant increase in the demand for buy to let properties in recent years. As more and more people are working from home, they start to prioritise their living standards and choose to move to bigger and better houses. While some homeowners are selling their properties in order to buy new ones, many homeowners are giving out their homes on rent and are choosing to shift into bigger homes as tenants. Homeowners are looking for properties with more bedrooms, spacious terraces or gardens and even home offices. If you’ve been thinking about investing in a buy to let property in the near future, now would be a good time to do just that. Get in touch with Allsopp & Allsopp estate agents and letting agents in West Midlands and Warwickshire for all your real estate queries.