Coronavirus is it a good time to buy a property

 

 It’s a strange time, with so much uncertainty, not just in the property market but in life generally, with constantly changing rules that govt large parts of our lives , deciding if it is the right time to buy a property is daunting .

In March when the economy locked down the property market went on hold as moving was not advised by the UK govt due to the UK wide lockdown. In mid –May the property market came alive and property sales exploded to a level not seen for some time . On Zoopla & Right move they estimated there were £37 billion worth of transactions between July 12 and August 8th. 

Property sales have been increasing steadily in recent years, but currently they have gone up by 20% on the previous year, higher than the record set in March 2017. 

The current Mini boom has no sign of slowing down with weekly sales figures between August 5 and August 12 up by as much of 60% compared to the same period last year, some of this is due to the govt incentive for no stamp duty on properties across England up to £500,000, this is for first time buyers , home movers and second properties , although second properties do still attract the 3% stamp duty charge . This means that people have seen a window of opportunity they have some spare money not spent on a holiday and they have the opportunity to buy a property free off stamp duty or in the cases of second property reduced stamp duty. 

Stamp duty before the recent government incentive for COVID on a property worth 500k was £10000, now it is Zero .

Second property before the recent government incentive for COVID for a value of £500,000 was a massive £30,000, now you would pay £15,000 a whopping £15000 in savings. 

The issue due to all of the above is people are fighting over properties & pushing prices up slightly. There is also an issue with getting a mortgage due to increased and tougher levels of underwriting, some surveyors down valuing properties due to Coronavirus fear of a possible market crash. Its made it a difficult decision to if it is the right time to buy a property. 

If you are moving home then yes I think it’s a good time as increased property prices will be offset by the one you are selling, no stamp duty up to £500,000 if you can secure another property and a mortgage if necessary then to me it’s a good time to move .

For first time buyers who have had stamp duty incentives , before the pandemic it might be best to hold tight as the boom might come to an end with possible prices dropping when the economy goes in to post pandemic recession and the govt is promising more incentives for first time buyers in the coming years . 

Buy to lets, a lot of investors were expecting a significant price drop, but are seeing a boom in in the market so are torn between low stamp duties and increasing prices. 

So in summery it’s good for some but not for others to buy or move home.