Real estate is one of the most attractive and profitable industries in the United Kingdom. According to Statista, this industry employees over 500,000 people every year. In terms of revenue, reports indicate that the average income this industry generated in 2018 was approximate £69 billion. In 2019, the average price of purchasing a house in the country was £230,000 according to ONS (U.K. Office for National Statistics). However, things have changed since the first case of COVID-19 was reported in 2020. The pandemic has caused an economic recession that has significantly affected the real estate prices in central London, as well as the UK at large. In this article, we’ll be the real estate marketing in central London with COVID, and other parts of the country.
How COVID-19 has Affected the UK Real Estate
The average price of real estate in the UK at the end of 2020 was £253,000, which is an increase of about 6% when compared to the previous year. This is despite the minor monthly fall of £2,080. Some of the factors that contributed to these figures include Sunak’s stamp duty holiday that temporarily halted taxation on properties below £500,000, stay-at-home policies that led to an increase in the need and demand for housing, and the COVID-19 recession. However, when compared to previous years, the volume of real estate transactions generally decreased in 2020. Therefore, in 2021, we should expect a possible decrease in property prices in the United Kingdom according to leading industry experts. This trend will be as a result of a number of factors, such as:
– The end of government furlough schemes and business support measures will leave a good number of people unable to service mortgages underneath the possible increase in the unemployment rate
– The overall economic recession
– Low demand for housing after a large number of property purchases made during the stamp duty holiday
The Marylebone Area Real Estate Scene
The real estate market in Marylebone and surrounding areas of central London have suffered too from the impact of the Coronavirus just like the rest of the UK. Consider these figures; in September 2020, the prices of houses were the highest after a significant increase that began in July. However, this has seen a drastic change since the beginning of 2021 and it may continue dropping even further as the year progresses. This is after January 2021 saw not even a single property sold in central London and a few ones sold in the months that followed. The prices, on the other hand, have not decreased that much and are relatively the same as they were before the pandemic. So to get the best property purchase deal, we recommend that you enlist the services of top Marylebone real estate agents.
The real estate industry in central London, as well as the rest of the UK, has been affected by the COVID-19 pandemic. Trying to purchase property on your own under these conditions isn’t the wisest thing to do. That’s why we recommend that you seek the help of a good and experienced real estate agent in central London for the best property deals.