Investing in Property Amidst the Pandemic
Investing in Property Amidst the Pandemic
The global pandemic has caused so much fear and anxiety in everyone. It has brought fear not only over our physical health, but it has affected businesses, jobs, and the economy in general. And the property industry is not exempt.
Surprisingly, the Scottish property investment market has been thriving. Buyer and seller interest remained not only prominent but increased.
Adapting To Facilitate Consumer Demand
When restrictions were put into play at the end of March 2020, the Scottish government was able to implement new rules in property viewings. In-person property viewings and valuations were no longer allowed, however, after two weeks of lockdown, the housing market introduced virtual viewings. A new way of viewing property, despite restrictions.
Scottish House Prices Rise: Including Edinburgh
Official figures by HM Land Registry found that the average house price in Scotland increased by 8.4% over the year, with transactions rising by nearly a third. And the City of Edinburgh, projecting an increase of 5.3%.
What Has Caused The Increase In Prices?
Industry leaders believe that lockdowns have led to people seeking more space. In the last quarter of 2020, the number in ‘sales agreed’ was 36% higher than the same period in 2019.
Paul Hilton, CEO of ESPC, said: “The first three months of 2021 has seen a real spike in property sales compared to the previous year. This is to be expected given how busy the market was at the end of 2020, but the LBTT holiday coming to an end in March may also have contributed to increased sales.”
To aid the financial struggles of COVID-19, the Scottish Government introduced an increased nil threshold on LBTT. Raising it to £250,000 for buyers in July 2020. However, the LBTT holiday ended in April 2021 in Scotland. The Scottish Government provided relief by introducing the three-month mortgage payment holiday for homeowners in March and extending the emergency law eviction notice period to protect renters.
With homeowners looking to upsize, LBTT relief and solicitors and agents’ ability to deliver service virtually, the number of people looking to buy or sell during the pandemic outweighed any negative impact from the pandemic on the property market.
What Does The Property Market Look Like In The Future?
Industry leaders, such as Savills and ESPC, predict a strong property market in the coming months. As the country works towards the new normal and the restrictions ease, the property market looks promising. The average Scottish house price is expected to grow further by 3% in 2021, with the overall property market growing more than 22.8% between 2021 and 2025.
Despite initial concern for the property market, Scotland continues to thrive, which is believed to continue for 2021 and the coming years.
The pandemic might have caused a lot of changes, but what comes with change is our ability to adapt. And as the property market continues to evolve, it will remain to find ways to survive any challenges. So YES, now is the perfect time to invest.
Investing in Property
We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.
Are you interested in finding out more?
Download our investor brochure by clicking the button below.
