House prices are soaring, demand has been high but how long will this last?
If I wanted to sell or buy – should I do it now?
The logical answer here is that house prices are predicted to drop even more than they already have. Lloyds Banking Group has said that we could see house prices fall by 5–10% by the end of 2020 and we could see a drop of 30% over the next three years. So, if you have the patience and the time, then waiting to buy your property could be smart. On the other hand, these are just predictions. Considering that the UK government has enacted a Stamp Duty Holiday on properties up to £500,000, this could be an even better reason to buy or sell your property. Not paying what can be quite a hefty tax on your new home should be a great incentive.
Which is better: commercial or buy to let?
Commercial finance is probably the most popular in terms of property for businesses, such as buying or expanding your current premises, investing in commercial property or to develop a property. Perhaps you’re looking to flip homes? This could be a good choice. But perhaps you’re thinking of getting into the property market to benefit from future rises in property values. A buy-to-let mortgage may then be a great idea for you. The rent that your tenants pay would cover the loan repayments, and you would then still benefit from your home increasing in value.
Where are the hotspots?
The main areas that we believe are perfect for investments within Leicester are West End, Clarendon Park, and Newfoundpool properties, and those located nearby Universities and Ring Road/Motorway links are even better. Ex local authority areas are far better priced for purchase due to them being of non-standard construction and properties in LE4 and LE5 have become very popular in recent years.
Is credit easier or more difficult?
We have noticed that lenders are conducting more thorough checks and requesting higher deposits of around 15% upwards from buyers and there has been a drastic reduction of the number of borrowers offering first time buyers the loans that they need for their first homes.
What is the future of developments?
We work with several nationwide developers and clients who are continually building/developing, and they’ve informed us that they don’t see their workload and commitments reducing anytime soon. The major obstacle they’re experiencing is around securing finance from banks and the purse strings are becoming increasingly tighter until there is greater clarity from the government.
If the market is subdued – when will it improve?
2008 was the last major crash because too many people had taken on loans they couldn’t afford. Lenders relaxed their strict lending standards to extend credit to people who were less than qualified. This drove house prices up and took several years to recover. Sadly, it’s hard to predict exactly how long it takes for the market to improve as it fluctuates constantly. Figuring out the best time to buy can be a lengthy process. Luckily, our team of experts is at hand for you to visit and discuss individual buying opportunities. We are well versed in finding the right property for you at the right time, so give us a call!
How have the extended lockdown affected the market?
This leaves potential buyers and sellers, as well as tenants and landlords, in much the same position as they have been since lockdown measures were announced on 23 March.
Estate agents ‘should be among first businesses to reopen’ as coronavirus lockdown eases, we should be among the first High Street businesses to be allowed to reopen, according to a report written from the Government.
Our focus is to build both Buyers & Sellers confidence, our results during the lock down we have listed properties by carrying out Virtual Valuations, how we have overcome this is working with our seller and training them to be an estate agent. We pride ourselves that we have managed even on lock down to still sell properties. Since lockdown we have still managed to list between 20-25 brand new properties and on average sell between 25-30, we are in such a strong position that supply is currently outstripping stock.
The Midlands is still a hot spot for First Time Buyer, Families to relocate and Investors, we are seeing an increase in student purchases within prime city locations including Leicester, Nottingham and Birmingham with Coventry and Derby not far behind. There are several developers continually building Highrise’s and Apartment blocks to match the demand.
Once the HS2 come closer to completion we will see a huge demand for properties closer to where the stations are located, but with the current delay’s completion dates have been pushed to 2028 from the original 2026. Schedule dates are currently Phase 1 London to West Midlands Expected completion date: 2028 to 2031, Phase 2a West Midlands to Leeds and Manchester Expected completion date: 2035 – 2040 and Phase 2b West Midlands to Crewe Expected completion date: 2035 – 2040.
With the government trying their upmost to help businesses and individuals to kick start the economy with grants. We as a business have noticed several business individuals taking advantage of the Bounce Back Loan to use as a deposit to purchase Buy to Let Properties increase their portfolio and net worth.
Stamp Duty Holiday is a fantastic initiative to incentive buyers to purchase higher priced properties which they wouldn’t have dreamed of, First Time Buyers will pay 0 Stamp Duty for properties up to £500,000- and Second-time buyers will pay 3% up to £500,000. But there is a deadline only until 31st March 2021 before the rates revert to for 1st Time Buyers which was 2% between £125,000 to £250,000 and 5% between £250,001 to £925,000. Second time buyers will then face paying 3% up to £125,000, 5% between £125,001 to £250,000 and 8% between £250,001 to £925,000.
Suki Kaur Kings Estates
Phone: 0116 352 7012