It is safe to say that there will seldom be another year like 2020. It seemed like there was be no end to the unprecedented developments that caught businesses, consumers, and investors completely off guard.
Of course, the primary instigator of said uncertainty was the Covid-19 pandemic; an ongoing crisis that governments worldwide are still clambering to tackle. A few weeks into 2021, however, and it seemed as though we may soon be entering the period of post-Covid-19 recovery.
As the UK prepares to come out from under strict lockdown, the rollout of the AstraZeneca/Oxford and Pfizer/Biotech vaccines signifies the beginning of a transition back to normality. But how should investors be preparing for the “new normal”? Which asset classes are set for impressive performances over the coming 12 months, and which may struggle to adapt to the post-Covid-19 era?
Commentators and investment advisors remain divided on the answers to these questions. What is key, however, is how the British real estate market will perform in 2021. As numerous assets struggled to handle the unprecedented uncertainty imbued into the markets due to Covid-19, British property was able to easily hold its value; and even post record gains.
In November, the average price of a residential property in the UK experienced its highest level of growth seen since 2015, according to Nationwide, signifying a marked end to the previous four years of property price stagnation. Again, according to the building society, annual house price growth rebounded to 6.9% from 6.4% in January, prices were up 0.7% month-on-month, more than erasing the small decline seen in January.
So, looking ahead, can the UK property market maintain this momentum? Can investors look forward to another year of gains for British property owners? Or could future unforeseen developments knock the industry off course, reversing the gains seen last year? Experts believe that there is a strong chance that 2021 may even surpass 2020 in positive property sector growth. After the current lockdown passes, they are confident that the high levels of activity seen last year will continue; further increasing the average price of UK property.
In December, Rightmove predicted house price growth of 4% over the coming 12 months, citing the knock-on effects of lockdown as a motivator for prospective buyers. Having spent the majority of last year home-bound, they claim, UK homeowners will be desperate to move home to larger lodgings; a trend that Rightmove believes will easily offset any negative market developments. It is difficult to imagine that any negative repercussions of the UK’s EU departure will seriously deter investment into British real estate to any measurable extent, at least in the short to medium term.
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Source: Techlink
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Below is a summary of the rates which applied from 23 September 2022 – 30 October 2024 to additional properties versus the new rates with effect from 31 October 2024.
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