Real estate is one of the most lucrative industries in the U.K., employing at least 500,000 people every year, as reported by Statista. For instance, in 2018 alone, the average revenue from this industry was about 69 billion British pounds. According to the U.K. Office for National Statistics (ONS), the average price for buying a house was £230,000 in 2019. So far, the real estate prices in central London have significantly changed, thanks to the pandemic-driven recession. Read on to find out more about real estate marketing in central London with COVID, as well as the UK at large.
Effects of COVID-19 on UK Real Estate
Despite the small monthly fall of £2,080 in real estate prices in the UK, the overall figures increased by at least 6% in 2020, resulting in a median price of £253,000. This was due to factors such as the COVID-19 recession, stay-at-home policies that increased the need and demand for housing, and the Sunak’s stamp duty holiday that only allowed taxation on property above £500,000. Even so, the number of real estate transactions generally decreased in 2020 compared to the previous years. For this reason, real estate experts are now predicting a possible decrease in prices in 2021 due to several “downward pressures” such as:
The possible increase in the unemployment rate when government furlough schemes and business support measures end in 2021, leaving many people unable to repay mortgages
The overall decline in the economy
Decreased demand for houses after the massive purchase during the stamp duty holiday
Real Estate in Marylebone Area
Like the rest of the UK, central London, including Marylebone, has also suffered the effects of the pandemic on the real estate industry. To give you an idea, the house prices were highest in September 2020 following a significant surge from July. However, house prices have fallen by at least 3% since the beginning of 2021, and this indicates that they may drop further. This is after a substantial decrease in the number of real estate purchases, with January 2021 having zero sales. Even after the drop, the prices are still relatively high compared to how they were before the COVID-19 recession. This means that you should seek services from Marylebone Estate Agents in case you want to access better prices in the market. Real estate agents also know how to navigate the property industry, and will save your time and energy by finding your most preferred property.
This is the current state of the real estate industry in the UK. However, in these uncertain times, it’s virtually impossible to predict the direction of the property market in central London. To get the best property deals in Marylebone, consult Jeremy James today.