Must Watch For All Property Investors—4-Year Property Review
Hey, I’m Samuel Leeds! Today, I want to talk about the property industry and how it’s been for the past four years. I am doing this because the way to make predictions in property is to understand the trends.
Right now, we are in a property boom. This is not just in the UK, but in the world where property prices are being pushed up, and people are paying more for it. Now, in the UK, let’s talk about 2016 when Brexit happened. 52% of the people voted in favor of our country leaving the EU. There was a lot of confusion and uncertainty, and this caused property prices to rise.
In 2017, in the month of April, Section 24 was announced. This is a nasty tax rule that caused many people to get out of this. The property prices kept rising.
During 2018 and 2019, property prices didn’t move. There was an increase of prices by 2%, which isn’t much.
What Happened In 2020
This was the case for four years. Then, we have 2020! This is when we actually left the EU, and many people were happy that there won’t be a second referendum. Property prices also started rising. I was finally excited! However, around January-February time, the Coronavirus happened. We went into a full lockdown in 2020. I’ll explain what happened to property prices this year, and what I believe the future would be like.
I’ve taken the figures for my explanation from NationWide, which is a pretty big bank. They said that in January, the average house price was 215,000 pounds. This increased till March. In March, people were afraid of what was going to happen. Then, we saw in May that house prices started lowering. In June, they dropped again. Then, they introduced the Stamp Duty Holiday. In July, we saw house prices going up, and we are seeing that ever since!
In July, it became 220,000 pounds; in August, it became 224,000 pounds. It increased in September again. Now, Boris Johnson said that investors will get 95% funding for first-time buyers for their house. Now, my prediction is that there is going to be a housing crash in 2021, because after every upturn there is a downturn.
Let’s talk about the opportunities as well here.
According to Business News Wales, commercial properties have dropped 7% between January and September. In Edinborough, they have fallen by 13%. In Bristol, they’ve fallen by 9%.
My prediction is that commercial properties are going to keep declining, and residential properties are going to get increased. Since residential properties are going up, a lot of developers are converting commercial properties to residential ones. In June, Boris Johnson did his ‘Build Build Build’ speech, where he said that there would be a lot of commercial properties where he’s going to scrap having to get planning permission to send a commercial property into residential ones.
Let’s see what happens next! I also know that during crises is when a lot of people also make money.
I hope you enjoyed this blog! Let me know your thoughts regarding this and whether you agree with me or not.
Keep watching my YouTube channel for more insights into property investing!
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