With the pandemic and lockdowns causing panic within the economic world, many investors are beginning to feel uncertain about the future of their finances and are even avoiding making certain investments until the market is healthy again. Still, experts are saying that now could be the best time to invest in certain areas including technology and the property market.
The property market in the UK will be especially interesting in 2021 for many reasons. Not only did the pandemic and lockdowns have an effect on it, but Brexit has also had an impact on the property market.
With that in mind, we are going to take a look at some of the factors affecting UK property market trends in 2021:
Escape To The Countryside- more and more people are making the move to the countryside and that is expected to continue throughout 2021. Working from home is still popular and workers can also transit to London during the week.
No ‘Cliff-Edge’ On Property Sales- with the stamp duty holiday coming to an end on 31 March 2021, we were expecting the market to “fall off a cliff edge.” This would be a logical assumption, but experts say it just won’t happen. Fortunately, there is still a lot of demand within the property market, enough to avoid a 2021 fall away. High values, and prime properties remaining particularly strong, will help to fuel the number of sales and purchases already in the process that are unlikely to be completed before the end of March. This has prompted industry leaders to urge the government to extend the stamp duty tax holiday.
Capital Gains Tax- we can expect to see an increase in the capital gains tax in 2021 as the government looks for ways to help rebuild the economy. Experts say that free allowances could be cut and that capital gains tax rates could be brought in line with income tax rates. That means that the top rate of CGT on residential property could go from 28% to 45%. We will have to wait for the spring budget to be finalized to know for certain.
To learn more about the factors affecting the UK property market trends in 2021, contact Pivro today and speak with a property investment expert who can answer any questions you might have.
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