Since homeowners are having to spend more time at home and restricting their leisure and travel there have seen a rise of 65% of homeowners inspired in home renovations with the top project being garden upgrades (34%) and closely followed by the living room (23%), bedroom (22%) and kitchen (22%).
Since people have become even more aware of their environment (flaws and all) there has been an increase in the demand for garden supplies, tools and hardware supplies. During these uncertain times, people who are looking into renovating now understand that things are harder now and take longer as the effect of the pandemic in commercial transactions continue plus contractors have been just recently able to provide their services again, with that a lot people having to be forced to do it themselves and it seems they are actually enjoying it.
So what does this suggest for people investing in property? It is said that it is a prime time for property investors to look at home improvements during these uncertain times to maintain being productive. Also, it's a great tip to check your latest amenity standards for new amendments.
Real estate is a major part of the UK economy. The UK is the biggest commercial real estate market in Europe, followed by Germany and France. The real estate industry includes buying and selling real estate, renting and operating own or leased real estate, as well as performing real estate activities on a fee or contract basis. The market value of UK real estate is £1.6 trillion, representing 21% of the UK's total net wealth. Real estate contributes £94 billion annually to the UK economy – 5.4% of GDP. The UK real estate industry directly employs 2.1 million people, which is 6.8% of the labour force.
There is strong proof that property investing is a profitable industry to be in. The most popular strategies being fix-and-flip, buy and hold rentals, buy-to-let, and the house of multiple occupations(HMO). Those who are looking to invest but don't have the time and commitment can also look at REIT or real estate investment trust.
The huge benefit of looking into investing in properties is that it has multiple benefits namely as the owner of a property, you stand to benefit from any rise in its value when it comes to selling, from the income it can generate if you rent to tenants – and, of course, from the utility, you get from living in or using it yourself.
The year 2020 seems like an unending feed of bad news. In August 2020, the UK announced that the economy is in recession after 2009. But what could this recession mean for the real estate industry? Let us find out!
What happened before!
The 2009 recession brought plenty of hardships with itself. The recession brought the housing market to its knees. Due to the layoffs, pay cuts, and rise in unemployment, people were not keen on investing in such a fragile market.
What happens now!
Whether the history repeats itself or not, that is yet to be seen. But there is no other way of saying it that hard times are nigh! The COVID induced recession has caused an almost 20 percent decline in the GDP in the 2nd quarter of the fiscal year.
What will happen to the housing market?
Based on previous and current data, we can paint an image of the effects of the recession on the real estate market. According to the Nationwide report, the housing prices might decrease by 1.7 percent. The comparative lower impact on the housing market is due to the government’s initiative of closing down large sectors of the economy. This initiative acted as a cushion to a free-falling economy.
This scenario is still pretty assumptive, if the unemployment continues to grow the real estate business is likely to take a harder hit. As people will not be able to buy the property.
How is this recession different?
This recession is different from the previous one as this is caused by a public health crisis and not a financial one. Due to the difference, the rates are not as much affected as a normal recession. Moreover, the government has offered to scrap stamping duty for 6 months.
This initiative is aimed to boost house prices. The Halifax price index also showed a spike in property rates after 4 months of stagnation. But, some researchers suggest that this spike is to be followed by a drastic drop. As the job losses continue to increase, the property market could take a severe hit.
