Price rise in UK property market defies expectations
Contrary to expectations, the UK property market has moved on, recording double-digit price growth, despite the market shock that arose from the crippling impact of coronavirus.
After almost 20 months, the end seems to be in sight for the pandemic, thanks to the miracle of vaccination which has made it possible for the market to be on course for its busiest year since 2007.
This is good news, especially for offshore investors who had foreclosed any possible price increases because of the pandemic which, analysts say, upended and confounded what a sense of normality is.
“We have seen price growth in the last six months and this has been fuelled by a number of factors, chiefly by a supply squeeze across most regions, with London being the least squeezed,” Yemi Edun, CEO, Daniel Ford International, London, confirmed to BusinessDay at the weekend.
The supply squeeze, according to Edun, is a creation of the pandemic as buyers and sellers alike reassessed where and how they lived during the three national lockdowns.
“This has inadvertently raised the demand for properties with outdoor spaces and proximity to greenery. The stamp duty holiday also came to an end on June 30, leading to a rush to complete purchases by the deadline,” Edun explained further.
He revealed that with the picture of the market now clearer, people have been asking questions on what to do now that the pandemic is over. He advised that whatever anybody would do now should be based on where the person is in his investment cycle.
For seasoned property owners, Edun advised further that before any further investments, they should see now as the best time to review what and how they’re holding their investments.
Pertinent questions should also be asked such as how short are the leases on your properties? Are your properties still fit-for-purpose or do you need to downsize? For those with enveloped dwellings, have they had a review of whether their structures are in good standing?
“These are all important things to consider and, in the case of an enveloped dwelling, could de-enveloping or liquidating the structure to a more tax-efficient vehicle be a better solution for you”? he queried.
Continuing, he advised, “for those selling, they have to be realistic with prices. Whilst we’ve seen record sales volumes, it does not cut across the board. The numbers seen may not be a true reflection of the overall market as new builds come tops due to the government’s help to buy and in some cases, particular price points that were achieved were a fallout of the stamp duty holiday. “
Edu quoted Barry Kyte of Hadley Kyte Solicitors, who has advised people buying property to keep a keen eye out for the EWS1 because of cladding. He explained that the winds of a historically low-interest rate fly in their favour with a current rate of 0.1percent.
“A great positive for Nigerian buyers is the fact that there are a record number of banks available to provide mortgage options with an equity contribution of 30 percent. These banks are both Nigerian and international banks,” he noted.
The next generation of upwardly mobile buyers, according to Edun, has sought to learn lessons from the mistakes of the older generation. Low property stock is still a hindrance, but in the search for ways to affirm their global international standing, a second passport is also now an important acquisition. Primary focus hotspots for such buyers are the U.K, Cyprus, Greece, Malta, and some islands like St Kitts and the Dominican Republic.
“For the most mature of our investors, one thing we’ve identified is people downsizing due to children completing their education. They are now focused on the important matters of Legacy and Estate Planning.
However, whatever your position or current standing, we here at Daniel Ford International are always available for a no-fee, non-obligatory conversation. We are open to the various means of reaching out via zoom and any other comfortable medium and are able to give tailored advice,” he assured.