According to leading global real estate advisor Savills, the property market is set to make a strong recovery this year after a challenging five-year period. The company predicts that the market will see a significant upturn, bringing much-needed relief to homeowners and investors alike.
The property market has been facing a tough time since the global financial crisis of 2008. The aftermath of the crisis saw a sharp decline in property prices, making it difficult for homeowners to sell their properties and for investors to make a profit. However, Savills believes that this year will mark the beginning of a positive turnaround.
The company’s research shows that the property market has already started to show signs of improvement in the first quarter of 2021. This is a promising indication that the market is on the path to recovery. Savills predicts that this trend will continue throughout the year, with a steady increase in property prices and sales.
One of the main factors contributing to this recovery is the low-interest rates offered by banks. With interest rates at an all-time low, it has become more affordable for buyers to take out mortgages and invest in properties. This has led to an increase in demand for properties, which in turn has driven up prices.
Another significant factor is the government’s efforts to boost the property market. The introduction of various schemes and incentives, such as the Help to Buy scheme and stamp duty holiday, has encouraged more people to enter the market. These initiatives have also helped to stimulate the construction industry, creating more supply in the market.
Savills also points out that the pandemic has played a role in the recovery of the property market. With the rise of remote working, many people are now looking to move away from crowded cities and into more spacious homes in the suburbs or countryside. This shift in demand has led to an increase in property sales in these areas, further driving the market’s recovery.
The company’s research also highlights the resilience of the property market during the pandemic. Despite the challenges posed by the lockdowns and economic uncertainty, the market has remained relatively stable. This is a testament to the strength and attractiveness of the UK property market.
Savills predicts that the recovery of the property market will be gradual but steady. The company expects property prices to increase by an average of 4% this year, with the potential for even higher growth in certain regions. This is great news for homeowners who have been waiting for the right time to sell their properties.
For investors, this is an opportune time to enter the market. With property prices still relatively low compared to pre-pandemic levels, there is a window of opportunity to make a profitable investment. Savills advises investors to act fast as the market is expected to pick up pace in the coming months.
In conclusion, Savills’ prediction of a five-year property market recovery starting this year brings a ray of hope for homeowners and investors. With low-interest rates, government initiatives, and changing buyer preferences, the market is showing strong signs of improvement. This is a positive development for the UK economy as a whole and a promising outlook for the property market in the years to come.
