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When the clock turned to 12am on the 5 November, England entered its second national lockdown.
The country is in a dire situation at the moment. With death rates, hospital admission rates and infection rates all increasing, calls for a new lockdown to combat the surge were getting louder.
Covid-19 has decimated families and English industries alike, with the hospitality industry, in particular, taking the brute force of the pandemic.
And yet, an industry that relies on people to keep it thriving, an industry that needs people to have money in their pockets and a will to invest, the property industry is absolutely booming.
Headline house price growths for North West
Savills UK, a real estate company, recently updated its industry acclaimed five-year house price forecast.
The price of UK properties is set to grow exponentially over the next four years, with a predicted growth of 20.4% by 2024. This is a 5% increase over the companies last prediction.
Each area of England and the rest of the UK are set to feel this increase, with the North West (which includes cities like Liverpool and Manchester) predicted to see a staggering growth level of 27.3%.
Landlords are feeling incredibly confident about the industry at the moment, with one in six considering expansion in their portfolios, according to Rightmove.
Prices are increasing so much in fact, that it’s the highest rate of growth since 2016 according to media outlet The Guardian. The average UK house price rose by 5% in September compared to the same month last year.
This now means the average UK price sits at 226,129, which is a record high.
In the capital, London’s average price has reached an eye-watering 480,857, which is 57% higher than in 2007 before the global financial crisis hit. We are beginning to reach unprecedented levels.
Tax holiday helping industry
There are a number of reasons why this has happened.
The UK government has been extra careful during lockdown to protect the industry and to promote continued investment with a break in stamp duty.
Back in July, Chancellor Rishi Sunak announced the Stamp Duty Holiday which will last until March 2021.
In the UK, those who purchase property pay a Stamp Duty land tax. But now, purchasing a property below 500,000 means you will no longer pay any stamp duty at all.
Overall, this means that the average stamp duty bill will drop by 4,500, with purchasing property over 500,000 seeing savings of up to 15,000.
The scheme, along with other factors such as behavioral shifts in tenants, who may be looking for different things in homes such as gardens because of lockdown, has seen investments continue to grow.
High rental yields promoting investment
The increase in house prices has done wonders for the buy to let property investment industry.
Buyers can now feel more secure in their investments as rental yields have also gone up in certain areas.
The North West, along with its headline house price growth, has seen some excellent rental yield returns, and local property company RWinvest has suggested these are set to keep on growing.
Liverpool, in particular, has seen some of the highest rental yields in the country, with rates of up to 11% in certain postcodes- a national high. Rental yields of 5 to 6% are usually considered good, making the latest figures impressive.
