2020 has been an unusual year for London’s property market. The COVID-19 lockdown brought the industry to a virtual standstill, while the government’s announcement of a stamp duty holiday induced a surge of buying and selling.
If you’re thinking of investing in a property in London, now might be the ideal time to do it. Here’s further information.
Now is the time to invest in London property – some key reasons
- Stamp duty cuts have offered real benefits
The government’s stamp duty holiday (which lasts until March 31st, 2021) has stimulated the capital’s property market considerably, with sales volumes rising by 27% within the first fortnight of the tax break coming into action.
It’s unsurprising, given the savings on offer. For example, if you purchased a £400,000 apartment in the city, you’d usually pay £10,000 in stamp duty fees. Under the new scheme, you won’t pay anything. If you’re a Landlord, the saving is even more.
- House prices are lower
The whole of the UK was impacted by the pandemic, with property prices falling across the nation. This was especially true for London, with some areas losing value due to lack of market activity. The industry is recovering, but in some locations, prices are still lower than they were before.
That marks a great opportunity for investors; enabling you to buy while properties are cheaper than usual, then reap rewards in the future through profit from capital growth. However, the situation won’t last forever, so it’s wise to act fast.
- Developers are particularly keen to sell
It’s been a tough year for developers, with construction paused for several months, and sales disrupted as a result. As such, many developers in the capital are keen to sell their properties swiftly.
It’s well worth exploring the latest development opportunities, particularly in ultra-desirable areas like Tower Bridge, and upcoming residential hotspots like Canary Wharf. Apartments in these places are ideal as buy-to-let investments, thanks to their proximity to Central London, and excellent transport links.
- VAT reductions for building work
If you’re searching for a property that offers renovation potential, you’re looking at exactly the right time. VAT has been reduced to 5% for most types of renovation work, which equates to substantial savings.
Likewise, redevelopment and construction companies are actively looking for work in the capital, in a bid to recover from the impact of lockdown. In short, it’s a good time to take on a project.
Key advice for investing in London property in 2020
- Stay focused on the future
2020 may be a tough year, but experts are forecasting that the property market will recover relatively swiftly. Remember, property investment is a long-term endeavour; though if you invest in a buy-to-let in the right location, you can generate a great rental income.
- Purchase in the right area
Upcoming property hotspots offer huge potential. Look for locations that have recently been regenerated, or search for new developments in prime residential areas. If you’re not sure where to start your search, talk to the team at Hastings International – we’ve got expert insight into the capital, and the best places to invest.