Pent-up demand is delivering “hard and fast results” across the U.K. and in the capital.
London’s housing market continued to pick up steam last week, with sales soaring to double the five-year average. The British capital and much of the U.K. have seen a surge in demand, with the number of offers buyers made on homes hitting record highs in recent months. The boom in activity reflects buyers taking advantage of short-term tax breaks that have eliminated stamp duty on the price of a home up to £500,000 (US$660,800) until April.
That window of savings also coincides with a mass shift in people’s housing needs, as people must accommodate working and, potentially, schooling their kids remotely, reflecting similar market forces driving activity in other parts of the world, notably the U.S.
U.K. sales were 69% above the five-year average in the week ending Aug. 29—the 15th busiest week on record, which has been keeping track for 20 years.
London was slower to see post-COVID rebound inactivity, but the latest sales data showed the capital’s recovery has now surpassed the rest of the country. The number of offers London sellers accepted in August was the highest on record. There are also signs that home prices in the capital, which have experienced years. of deflation in the wake of tax changes and Brexit, could show more strength as a result of the boost inactivity.
Due to COVID, the priorities of people have changed they have become more centered towards a healthy lifestyle. Driven by the high-quality healthcare they provide, the UK is placed among the Top 3 most desirable locations in the World.
Also in an effort to revitalize the property market, there has been a reduction in Stamp Duty Land Tax (SDLT) on all the property purchases made between 8th July 2020 to 31st March 2021. On all property purchases under £500,000 there is 0% SDLT, however the 3% rate on the purchase of additional dwellings is still in effect. So the SDLT on property purchase up to £500,000 is 3%, on £500,001 to £925,000 is 8%, on £925,001 to £1,500,000 is 13% and for the portion above £1,500,000 is 15%.Therefore the introduction of a tax break helps an investor in saving £10,000.
Also if we talk about the educational sector, the UK has the most renowned universities like Oxford and Cambridge which appear in the Top 10 universities of the world. Along with this the technology sector further contributes to the wider economy and is recognized as the strongest pillar for the economy. All these factors make the UK the most desirable location to invest in.