These are strange times. After having dealt with the uncertainty of Brexit over the last few years, along comes Covid-19 to throw another spanner in the works of the UK property market. The whole industry is slowly coming out of a period of enforced stagnation, where agents were unable to show properties, prospective buyers unable to view them and more or less every industry shut down.
You might think that this kind of economic calamity would have disastrous effects for the property market, and some were definitely predicting that. However, the surprisingly good news is that as the market begins to resume, it is showing some very positive signs. The house price crash is yet to materialise and it seems few buyers have been put off making their move until the pandemic is over.
If anything, more people are now more motivated to move than ever. This seems to be for a number of reasons. First, people are now appreciating the appeal of outside space. Having a yard or garden, or even a balcony, has never been more important and people want their own patch of sky. Second, people are realising that now is always better than never. Never has it been clearer that we simply don’t know what is around the corner, so why wait?
So, what does all this mean if you are looking to put your money in property? Is it the best time for property investment in 2020 or should you wait to see what happens?
Why now is a good time
What we have seen is that the market is more resilient than many suspected. The huge demand for property in the UK is outstripping supply, which will keep prices high. Yes, there is need for caution because the full economic consequences of lockdown are yet to be felt but this also means that people are keener to make a quick sale than ever before, which also means there are some deals to be done.
When you look at it this way, then it might be a great time to invest. Prices are still going up but people are motivated to sell. Essentially, it’s a buyer’s market – which is always good news for investors.
You should be prepared for there to be some fluctuation with prices in the coming months. And let’s not forget that the Brexit saga is still yet to reach its final conclusion and there may yet be some more effects of this in the coming months and years. So, you need to think carefully about what kind of investment you make. A quick renovation and turn around for profit might be a riskier strategy than buy to let investments.
But just how accurate is this depiction?The Siddharth Mahajan property case is much more complicated than the version portrayed both in the press and in the rumours swirling around online.
He worked for several years in his native India before making the move to London.
He started his business with the aim of catering for travellers looking for a little bit of home when abroad.His empire soon grew to more than 50 properties, all offering accommodation to people visiting the UK for long periods.What is an HMO?Siddharth Mahajan then had the idea to let the different rooms in his properties on an individual basis.
The idea was based on the concept of a serviced apartment, targeting corporate visitors and overseas students.
This concept grew to incorporate all 57 of his properties, some in his name and others in the name of his business, Tulip Hotels.HMOs are common across the UK but they require a different set of licences to other rental properties.
Speak to your local council to find out more.The caseIn 2015, Mahajan received a notice from Barking and Dagenham Borough in East London.
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Several industry experts said on Friday that the Reserve Bank of India's (RBI's) decision to keep key interest rates on hold augurs well for the real estate sector as it will further improve consumer sentiment.Aditya Kushwaha, CEO and Director of Axis Ecorp, said keeping the rates unchanged will prompt more buyers to invest in secured assets like real estate.
"For the upcoming season, real estate players including us are looking forward to launching new projects.
"Vinit Dungarwal, Director of AM Project Consultants, said keeping interest rates unchanged is a welcome move as it will help in demand creation.
"For the real estate sector to have a strong H2, low interest rates offered should continue preferably till the end of the year.
"Sandeep Runwal, Managing Director of Runwal Group and President-Elect of NAREDCO Maharashtra, said apart from low interest rates, consumers' realisation of owning a home along with stamp duty cut in key markets were growth drivers for the real estate sector in past few quarters.He said strong demand is expected to continue going ahead.Vikas Wadhawan, Group CFO of Housing.com, Makaan.com and Proptiger.com, said the RBI's decision augurs well for real estate industry in general and home buyers in particular.
"A record-low interest rate regime will enable a large number of buyers to invest in property.
