The UK is going through a rough time after the former Prime Minister stepped down to avert a rebellion, but the troubles didn’t end there. The pandemic had left many countries empty, and the UK was no exception. Especially being one of the countries that was first and worst hit by the pandemic. The nation’s economy destabilized and has since been on a roller coaster. But surprisingly, its housing market has been booming since 2020.
When the pandemic stuck in 2020, everyone expected the housing industry to go down, but against the predictions, it hiked up to 21% the very next month. What is contributing to this growth? Is it real growth, or is it just an illusion? If you are looking to buy a property or sell a property, you must want to know about the rates in your area and how it affects your price. For that, closely watch the real estate news and understand the following four factors contributing to the current situation.
The government had declared a mortgage Guarantee scheme, and the banks had brought down the interest rates. There were also exemptions on stamp duty for up to 500,000 pounds. This ensured that the baby boomers in their 50s and 60s could buy houses using these schemes while the younger generation was hit by unemployment.
The number of houses for sale has gone down, but the population willing to buy has shot up. The imbalance in the supply and demand has led to the crisis, and with the inflation going up and the banks hiking interest rates, the prices have started to rise again, making it impossible for people to buy homes. Hence, led by the former Prime Minister, wealthy people and ministers gave up their second or third homes for sale so that people could have homes to live in.
Another reason for the surge in price is the presence of positivity in the minds of people. Covid has taught us important lessons, and people have a positive outlook on life after the pandemic. Also, the unemployment crisis is almost over, and people look forward to saving money and investing more.
Need for Security
Despite high prices, people are afraid to sell their houses, thinking they will still grow, and people are ready to buy as they need a house to start having a family. One of the other reasons is the rising rental costs that are higher than interest rates and pushing people towards buying a property.
Despite the economic disability, it is a good sign that the housing market is booming. Still, it is also a potential threat that it might be in a bubble and needs serious consolidation. However, if you are a seller, this is the ideal item to sell, and if you are a buyer, you might want to wait till any policy correction. Pandemic has affected things indirectly and boosted the price hike indefinitely. Keep watching the real estate news to stay updated on the prices and policies.