As a property developer and investor, it is crucial that your portfolio gives your target audience what they require from their home. Whether this is a short or long-term let or they are looking to buy a renovated property from you, giving the consumer what they want is key. And, as we all find ourselves in the winter month and amidst a global pandemic, it is encouraging to see that even on Boxing Day, there was an increase in those looking for a new place to live.
The property search portal Zoopla recorded a 70.5% increase on Boxing Day this year. This surge of people navigating the web in search of a new property suggests that the housing boom will continue into the new year. The figure this year is a significant increase from the 61% spike recorded in 2019.
Zoopla is quick to ensure this 70.5% increase is not a one-off; over the Christmas period, Zoopla has seen the number of searches on their website increase 33% from the previous year.
Tom Parker, Zoopla’s consumer spokesman, explained, “the Boxing Day bounce is not a one-off phenomenon… This is set to intensify in January given the now imminent end to the stamp duty holiday, which is set to bring more hungry buyers into the market, keen to find and complete on their dream home before the stamp duty deadline expires at the end of March (Zoopla).”
What does this mean for Property Investors and Developers?
The increase in buyers to the market is great news for property investors with properties they are looking to sell or rent out. With the stamp duty tax holiday still in play until 31st March 2021, the buyers in the market are able to push their budgets higher without the worry of added fees.
Moreover, with more interest in your renovations or any assets you are looking to cash in, you can achieve the properties’ full value. With multiple buyers potentially interested and no stamp duty charges up to the value of £500,000, you could find prices driven slightly higher to secure the purchase.
However, it is worth remembering that not all sales will finish before the stamp duty holiday ends. It is estimated that only around half of all accepted offers will complete before the deadline is up.
As a property investor or developer now is a great time of year to see what features are drawing in the interest and what buyers are refusing to compromise on. This year, due to the coronavirus pandemic and the lockdown restrictions, the majority of buyers were looking for properties that were ideally detached with a separate garage and outdoor space. Another top requirement is additional space for home working. You can find out more in our article on the top search terms prospective buyers and tenants have been using this year. (ADD LINK)
Despite a rocky start, the UK housing market came back stronger in the latter half. During 2020 £300 billion worth of properties changed hands, £62 million more than 2019 (House Price Index).