UK Market Watch: Out Now!
Our latest edition of UK Market Watch is now available. It explores the current trends in the residential rental and sales markets, with a focus on the overall impact of the Stamp Duty Land Tax holiday and the current ‘race for space’, a trend that sees home buyers looking for larger properties because of their new ‘work from home’ situation.
UK Sales Market Sees ‘Complete Turnaround’
The first half of 2020 saw activity almost slow to a halt in the wake of the first UK lockdown and today it continues to reach record highs, having seen a ‘complete turnaround’ over the past 12 months. The rise in activity has been attributed to a number of factors including:
- The Stamp Duty Land Tax holiday
- A supply-demand imbalance with available properties significantly outnumbered by prospective buyers
- The ‘race for space’
Stamp Duty Holiday
Extended until 30 June (and tapered from 1 July to 30 September), the Stamp Duty Land Tax holiday continues to add momentum to the already active market. Although experts suggest that once the holiday ends the market may not experience a significant dent to activity because levels are already so high. In fact, a recent survey conducted by Nationwide Building Society found that more than two thirds (68%) of respondents would have entered the market even if the stamp duty holiday had not been extended.
‘Race for Space’
The new focus on ‘work from home’ directives has had an impact on both the UK sales and rental markets. As many no longer need to live within a certain distance of the office, they are relocating to other areas of the UK with higher property availability and more outdoor space. This trend has had a particular impact on the north of the UK, which appears to be attracting a large number of prospective buyers.
Long-term forecasts remain uncertain. Although experts caution that once the furlough scheme ends this September, unemployment may begin to rise, impacting property prices towards the end of the year.
When considering these trends, we recommend that relocating employees act quickly once they find a suitable property and stay in regular contact with their relocation services provider throughout the home moving process.
Should you have any queries relating to this or any other aspect of your mobility programme, please do not hesitate to get in touch with your Cartus representative or email cartussolutionsEMEA@cartus.com.