There are several points of view, and not all predictions pan out. Some predict that Britain will see a real estate crash. Others, on the other hand, are more upbeat and focus on the advantages that will prevent this disaster. The real estate market has experienced an unexpected upswing since the outbreak, keeping everyone involved, including estate brokers, very busy.
It is unclear if the bubble will burst, though, given the blow to the economy that inflation, the conflict between Russia and Ukraine, and other catastrophes have inflicted. Although a delay is anticipated, a genuine crash is not likely to occur.
Demand: One of the primary things that will keep the real estate market moving forward is the constant excess demand over supply. You can also consult with a local estate agent for a free property valuation in Bracknell to boost your property sales. The demand will continue to exist as long as there are not enough properties available and there are more people looking to buy or rent homes. The administration has not yet achieved its aim for new construction. There is currently less supply than there is demand. Despite a slight slowdown in the frenzied market pace of 2020–2021, real estate investment is still a common choice. Rents and prices will thus not go down.
Locations: The mandated online working and lockdowns sparked a massive “race for space” to suburban locations with larger housing options and greater outdoor space. In some places where demand is still great, this trend is still present. Rents and property values are rising as a result. Many individuals have returned to cities and economic hubs like the South East, which is appealing to working professionals since normalcy and office work have resumed. Consequently, the demand for these places is rising, which is driving up the price of real estate.
Governmental programmes: The SDLT (stamp duty land tax) cut during the epidemic served as a motivator for many people. The housing market rose to extreme heights as a result of the rush to invest in real estate. In order to keep the real estate market stable, several more incentives have also been made to assist buyers and sellers.
LISAs, or lifetime individual savings accounts, can be utilised for first-time home purchases. The Lifetime ISA limit of £4,000 contributes toward your yearly ISA maximum, per https://www.gov.uk/lifetime-isa. The amount is £20,000 for the tax year 2022–2023. Under some circumstances, the Mortgage Guarantee Scheme provides mortgages with a maximum LTV of 95%.
First-time purchasers of newly constructed homes may be eligible for an equity loan to help with the cost. This programme is valid till October 31, 2022.
Right to Buy: In England and Northern Ireland, the Right to Buy programme entitles residents of council homes to a discounted price on purchases. One benefit is that a lot of mortgage lenders will take the discount as a down payment for a mortgage if that is what is required.
Shared ownership is a service provided by housing associations, municipal governments, and other organisations. The tenant has the option to purchase a portion of the property from the landlord (often the council or association) and pay rent on the balance.
Rise in first-time buyers: Despite the economic climate and poor levels of affordability, there has been an increase in first-time buyers. Young professionals are eager to invest in real estate in addition to families looking for residences. Even while the cost of a house may have increased, the amount required for the deposit has fallen thanks to low LTV mortgage schemes, making it more accessible. It is simpler with long-term fixed rate alternatives. The same goes for creative programmes like Bellway property developers’ Deposit Unlock.
Human nature: Because real estate prices have been rising for such a long time, many people assume that this trend will continue and that prices will continue to rise. Impulsive urge to purchase real estate at the market rate today in order to avoid paying the higher price later results from the anticipation that prices will continue to rise. Despite how unimportant it may seem, this usually affects the market.
Rentals: There has been an increase from the previous year, and office workers, students, and foreigners are the main demand drivers. City centres that experienced a decline in rentals during the epidemic are now seeing a rebound as demand for residences rises. Additionally, this will keep the market alive.
Despite the foregoing, the property market is expected to slow down due to economic instability, inflation, rising mortgage rates, and potential environmental catastrophes. However, the foregoing indications of demand versus supply, prices that are still rising, and ways that individuals are still able to purchase a home indicate that the real estate market will continue to be active.