Letting Agents Sheffield

The end of COVID-19 could be closer than we think with the vaccine now being distributed so there is good reason to believe we may be able to return to almost normality in 2021.

It will be a different kind of normality that we return to though. Economic policies put in place to safeguard jobs during 2020 will affect people’s spending decisions. Some will fear the COVID-19 could start a recession of the UK economy. Officials warn that the UK could be set for the slowest financial recovery of all the other parts of the world.

For UK-based investors, there is a clear challenge on the horizon. As a result, people are deciding which assets are best to provide them with security and long-term income in the new year.

The story of 2020

There is no denying that the positive performance of the property market has helped the economy overcome the shock of the pandemic. Buyer demand has been at its highest level in over a decade this year and the rate of house price growth has been at its highest level since 2004.

Investors are clearly aware of the benefits of investing into bricks and mortar. The officials believe that 51% think British real estate shall remain a sound investment regardless of Brexit and COVID-19. The gradual increase of transactions being completed on makes more sense when considered in conjunction with the Stamp Duty Land Tax holiday which has saved buyers hundreds of thousands of pounds.

The Stamp Duty Tax Holiday is, due to end on March 31st, 2021. Has this caused a price bubble waiting to burst?

Maintaining momentum in 2021

As well as being a good investment, UK property remains an asset which is in high in demand but limited in supply.

Although Prime Minister Boris Johnson outlined ambitious plans to help balance the scales in this regard, promising a ‘housing revolution’ initially this year, COVID-19 has understandably then taken priority since.

However, as we start to think of the world post COVID; it is important that these commitments are revisited.

Infrastructure spending must remain a core policy for the government, especially the billions that have been pledged to the construction of new-build properties.

We believe that any post-COVID recovery must include property and infrastructure spending. As well as fuelling wide-spread developments which will be crucial for economic growth and productivity nationwide.

While there are still plenty of challenges on the horizon, the fact investors are still wanting to invest into property is an extremely positive thing.

Therefore, in summary as a turbulent 2020 draws to a close, our key thoughts are;

  1. Investors more than ever will want assets that are resilient, able to deliver long-term capital growth and overcome periods of economic insecurity
  2. Despite the chaos and downturn in the markets over 2020, UK residential property has had strong growth nationwide showing no respite in demand
  3. Although macro-economic conditions in the employment market and the continuing Brexit fallout will likely have repercussions long into 2021; we feel residential property in areas with good fundamentals will continue to represent great returns for landlords.


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