The UK is one of the world’s leading economies, and London has been ranked as the best city to live in. Despite being an expensive place to live in, the city of London appeals and lures in people from different parts of the world. This has led to immense growth in the real estate business across all the boroughs of London. With the increase in the number of residents, the demand for new-builds and other property types is developing with every passing day. The cost of renting or buying a home is one of the most significant aspects of living in the UK. Buying a home can be intimidating for many people because it is such a mattering investment. The increased availability of a property for sale in Hyde Park and other neighbouring boroughs is attracting investors from local and overseas.
The real estate business has boomed surprisingly well in the last few years, where sellers and buyers have benefitted from it. The economic status in many parts of London and the UK was adversely affected during the lockdown last year, which directly affected the property market. Sellers had to slash the price tags of their homes to meet the market trends. At the same time, most buyers faced a financial crisis due to the increased rates of unemployment. The estate business is slowly recovering and crawling back to its original state. Despite all the hindrances, there were buyers from different regions who invested in several London properties in the past few months.
Most people moving into the city of London have always preferred renting over purchasing a property as it is a pocket-saving option for short term stays. The year 2021 saw a potential rise in the number of tenants during the post-pandemic time. The rental charges dropped down in 2021 across different regions of London, which was the main reason for people to switch to renting a property. With many people living in a property purchased by them, the number of rentals available is lesser compared with the incoming residents who prefer properties to rent. This imbalance is causing a price spike in the rental rates in many parts of London. Due to the high demand for rental properties, there might be a significant rise in prices by 2022.
DEMAND AND SUPPLY BALANCE
There were many people from London and overseas who stepped into the property purchasing process despite the lockdown and other financial hurdles. There has been considerably less number of new-builds in the boroughs of London. The low supply of properties will continue in 2022 despite the sky-high levels of demand from buyers. House prices and rents are predicted to continue rising over the next five years, according to the latest reports. This is due to continued economic uncertainty, as well as the demand for housing being higher than supply which means that house prices are likely to keep rising.
PROPERTY MARKET IN THE UK
Real estate is a complex business and undergoes multiple changes in a year based on various aspects. There was a significant drop in property prices due to the lockdown in 2019. Additionally, with the inclusion of stamp duty holiday and low mortgage rates, the price range of properties in the UK and London were stagnant. The gradual improvement in the nation’s overall economy and people’s employment status boosted the property market in 2020. The prices rose slowly to a better number by the mid of 2021. The increasing demand for owning a property despite the shortage is the main reason for sellers to hike the asking price. Multiple buyers are bidding for a single property leading to higher property prices. This situation will prevail for a while, and the selling prices might go further upwards in the property charts.
CURRENT AND FUTURE ECONOMIC REPORTS
The thriving economy of London and the UK has taken people by surprise after the robust pandemic dip that occurred last year. The real estate business, among all other working sectors faced an unfortunate effect that lasted for more than a year. This situation forced the sellers to reduce the asking price of their property by 1.8%. This was followed by an unrushed escalation of property prices by the end of 2020 and rose steadily in 2021. Demand for properties for sale and purchase has driven the overall competition, gradually improving the financial system. With the growth in GDP, the UK’s economic conditions might flourish well in the coming months and return to a better state by 2022.