House prices in the UK have risen by 10.9% over the past 12 months. This is the most significant increase for seven years in what the Nationwide Building Society describes as a ‘race for space’, with buyers seeking bigger and more spacious properties.
A rise in home working and an increase in time spent outdoors during the pandemic has prompted a change in priorities for many buyers. Room for a home office, larger gardens, and close proximity to parks and green spaces are replacing the desire for good transport links. Open-plan homes are becoming less popular as people look to segregate their living and working areas.
Buyers in Scotland enjoyed tax-free moves on properties valued up to £250,000 after the Government raised the Land and Building Transaction Tax (LBTT) threshold from £145,000 last July. The tax break ended on 31 March, but the property market is still buoyant, with demand exceeding supply in many areas.
Britain's Average House Price
The average price of a house in Britain has hit a high of £242,832, up nearly £24,000 over the past 12 months. In 2011, the average UK house price was below £170,000.
Covid-19 has had a significant impact on the property sector, with house viewings curtailed and video tours becoming the norm in both the sale and rental sectors. In-person viewings are now permitted as long as Covid-safe protocols are in place, including limiting numbers and keeping doors and windows open. Clan Gordon has been following these practices and their own risk-based approach since the start of the pandemic.
Securing A Good Mortgage Deal
Good mortgage deals were hard to come by at the start of the pandemic, but rates are now lower than pre-pandemic levels, and there are great offers available, especially for those with big deposits. Accord recently extended its services to include lending in Scotland with a range of buy-to-let products.
Nationwide predicts that house price growth will continue for the next six months, but the long-term picture is less certain, with the possibility of rising unemployment rates having an impact later in the year.
However, the rise in demand for property across the UK has yet to result in an increase in property coming onto the market, which could help keep prices high.
Some of the changes made necessary by the pandemic are still in place and are likely to continue for the foreseeable future. Many agents still use video viewings to showcase homes and shortlist potential buyers and tenants for in-person visits. A virtual tour can provide a good insight into a property and attract those from further afield as they can view before making a trip.
Is Buying an Investment Property after the pandemic a good idea?
While the pandemic has certainly impacted the UK property market, Government interventions in Scotland and the rest of the UK have boosted sales, and great mortgage offers continue to paint a rosy picture for buyers.
Buying a property to let can be a good investment if you know what you’re looking for. Edinburgh offers great opportunities, with demand for quality rental property remaining high. If you’re considering investing in property to let in the Edinburgh area, our team is happy to advise you on the best opportunities on the market.
Clan Gordon looks after more than 500 properties in the city, and our team of property management professionals offer expert insight on the buy-to-let market in Edinburgh. Schedule a call to speak with our team so you can secure a property that’s worth investing in.
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