Nobody could have predicted that a mini property boom would have happened during a global pandemic in 2020. With that in mind Co-founder of Progressive Property, Mark Homer takes over today’s podcast with his property predictions for 2021. Mark discusses why many retailers are moving to the outskirts of the city, a possible stamp duty exemption extension and why we are likely to see a rise in single let properties as unemployment rates rise.
KEY TAKEAWAYS
The pandemic has had a huge effect on many industries, especially retail. Many retailers are moving into warehouses on the outside of town to fulfil their customers’ needs for online purchasing. Despite what most of the property experts said, the property is gone up significantly this year.
Many people want to move to different sized homes in different locations as they are not having to commute as far with the pandemic. In addition to this, a stamp duty exemption has reignited the market and pushed it on. The stamp duty exemption ends in march, however, there is talk of it being extended.
Focusing on whether the property is going up or down is the wrong thing to be looking at. You need to be looking at strategies that work in all markets because it is unpredictable. Nobody knows what will happen to interest rates or government support, which has given support to the employment and property market.
The residential housing markets (specifically single lets and HMO’s) are likely to see increased tenant demand in 2021 because unemployment is predicted to rise and people will likely decide to rent instead of buy. This is likely to push rent up and reduce voids.
The further into the year we go it is likely that house prices and stock markets get a significant lift as the value of money decreases. The prices of consumer goods and everything that goes into the basket for the retail prices index is not likely to lift that much if it did quantitative easing would be reduced significantly and interest is likely to go up. However, it is more likely that asset prices are likely to increase.
Lessons learned from 2020 taught us that things can only get better. It also taught us that people can have a very short term mindset, there were much more motivated sellers in the last recession and there were many more property deals to do because there were so many sellers that needed to offload to raise cash. After the market came back, property prices rose.
#HousingCrash #PropertyMarket #2021PropertyPredictions
Mark Homer tour video of the 99 apartment build
https://youtu.be/ZONoj8v3usU
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