6 Key Trends in the UK’s Real Estate Market 2019

The real estate market in the United Kingdom has been undergoing serious changes over the past decades. Given the amount of money that people have invested in this industry, it is only fair that we give you a glimpse into the future of this industry. With the analysis of the present trends as well as the predictions, you will likely be able to understand the opportunities that you have in the real estate market and the precaution that you need to take to protect your investment. 

Industry Revenue Rising

Resilience has continued to define the economy of the United Kingdom as the trading and political environment remains challenging. The Brexit uncertainty has directly influenced business and buyer confidence. The government has asked her majesty the queen to suspend parliament over the same issue that led to the resignation of Theresa May. However, the country is not new to these political maneuvers. As at now, the residential and commercial property markets are responsible for revenue growth. However, residential property transactions have never been stable for the last few years. However, that has had no adverse impact on the economy given that industry revue continues to rise. 

Online Continues to Grow

The number of homebuyers and sellers that are turning to online estate agents, such as Propertyflock, has been increasing consistently. Possibly, the high quality of service that they offer coupled with the convenience that advanced technology offers is responsible for this increment. People want flexible contact hours, lower service costs, face-to-face visit from local experts, and responsive, 24/7 customer support. 

House Prices Increasing

 The prices of houses have been inclining at a high rate in the recent past too. As of April 2018, the average price was £226,906. Today, it is about £230,292, according to the House Price Index. The index currently stands at 120.78. From this figures, it is evident that the prices of property in the UK has risen by an average of 0.9% from last year. With the present uncertain political atmosphere, the prices may continue to go up. Industry experts think that it will have increased by about 20% by 2022. That may be good news for some people who intend to sell their houses in the near future. 

Homeowners on the Increase

Despite the rise in the cost of property in the UK, the number of people buying homes has been increasing consistently. This has happened for the first time in 13 years. The global economic meltdown of 2008 created an imbalance between property prices and wages. The UK government swiftly responded by prioritizing homeownership. It announced a loan scheme that has ensured the purchase of over 160,000 properties. First-time buyers have made approximately 81% of the purchases. At the same time, Stamp Duty cuts are saving 80% of these first-time homeowners up to £5,000. Due to the increase in the rates, the cuts, nonetheless, will only benefit these who have already bought these properties.

Popularity of New-Build Homes Increase

 Many new homeowners and buy-to-let investors are choosing new-build houses over the old ones for many reasons. They value higher energy efficiency. These people know that they are able to save hundreds of dollars per year when they live in these properties. The Help to Buy Equity Loan scheme is a quite appealing to them. They want to save money, but that is not all. These buyers cherish to have the chance to customize their buildings to suit their unique needs. Evidently, this trend may lead to the reduction of the prices of older properties going forward.

Leisure and Automotive Become More Profitable

 The increasing business rates, the growth of ecommerce, and the high employee cost are some of the factors that are currently weighing on the minds of the majority of retailers in the country. The retail sector is one of those that are polarizing into ‘convenience’ and ‘experience.’ Since the political storm cannot eventually interfere will all the business ventures, pubs, leisure, and roadside retails will remain highly appealing to investors in case the political climate do not change soon. 

Many people will be able to buy music instruments and equipment from ecommerce platforms. Karaoke Bananza and online vendors offers the items that people can use to start their own entertainment businesses or for personal use. As people change their purchasing behavior in this manner, the prices of property will likely continue to increase. 

Final Thoughts 

The UK property market is continuously transforming, especially with the uncertainty that comes with the politics around Brexit. The ever-changing taste of consumers, demographic structure, as well as advances in technology also has a direct influence on this. The above trends and stories that experts focus on are essential and should not be ignored. They will influence the real estate market and the operations of real estate agencies in one way or another. 

Applicable taxes on real estate in the UK

Any kind of property that has buildings and natural resources such as water and minerals and is meant for either residential or business purposes is known as real estate. Anyone who owns a property or real estate has to pay the real estate tax in almost all the countries including the United Kingdom. There are certain laws about it which specify the requirements of real estate in each country and everybody has to abide by those laws.

Real estate is divided into many categories that have different characteristics and are meant for different purposes and there are a number of real estate agencies in operation meant only for this. Some of the examples of real estate are given below:

  • An apartment or flat
  • Multi-family house
  • A house with a terrace
  • Single family house
  • Two houses sharing the same wall
  • Mobile homes such as caravans
  • Villas
  • Mansions

All of the above relate to different categories of real estate and there are different kinds of taxes that are meant for every one of them. To get a better understanding of the real estate taxes in the UK, let’s take a look at real estate laws first.

Real estate laws in the UK

Although much legislation exists there are only two laws that mainly govern the real estate in the UK. These two laws are;

These two acts are the pillars of the real estate system in the UK and they specify every single thing that might concern the real estate buyers or sellers. They provide all the information about all the aspects of real estate such as the process of buying or selling, registration, applicable fees, taxes, and every other matter.

Understanding different kind of taxes on real estate in the UK

Before you decide to buy land or real estate in the UK you need to consult with an expert advisor as early as possible. He will inform you all about the taxes and their costs and what will be the final amount of money that you will need to spend on buying a piece of land. There are different scenarios for different kind of people, for example, if you are buying real estate in the UK for this first time and you don’t own any land or real estate in other countries, taxes will be different from the ones who already own a property in the same country or other countries. The taxes that you will be required to pay are given below.

Applicable land tax or stamp duty

Anyone who buys property in the UK has to pay the land tax. If you buy a property of £125,000 or less then there is no applicable stamp duty but if the property that you are buying exceeds this limit then you will have to pay stamp duty. If you buy a property ranging from £125,001 to £250,000 then the applicable land tax will be 2%, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000 and 12% on more than £1,500,000. The calculation is carried out in a way that if you buy a property of £225,000 then there will be no application fee up to £125,000 but you will have to pay 2% tax between £125,001 and £225,000 so the amount that you will pay will be £2000.

If you are buying a property and you already own then an extra 3% tax will be applicable.

Annual tax

The annual tax is applicable only to those who own a residential area and have a company or an enterprise. The applicable tax will be £15,000 between £2million and £5million, £35,000 between £5million and £10million, £70,000 between £10million and £20million, and £140,000 on anything more than £20million.

Income tax

If you are a UK resident and you own a residential property and you rent it out when the income tax will be applicable on this property which will be up to 45%. If you are a non-UK resident then the income tax will be limited to 20%.

Capital gain tax

Up to 48% of the Capital gain tax is applicable if you own a property and you decide to sell it. CGT will only be applicable to the amount that you gained which is the difference between the buying price and all the money you spent renovating it and the price that you got selling it. If you are not a UK resident then these taxes will not be applicable to you.

Inheritance tax

If you own a property of more than £325,000 and in the case of your death your children will be required to pay 40% tax as inheritance tax. This tax will only be applicable to the difference between £325,000 and the total price of the assets. If you are not a UK resident then you might be able to avoid it all along.

Real Estate Luxury Properties

Real estate luxury properties are the properties which include magnificent, beautiful, artistic houses, apartments, penthouses which are spread or comprises on acres. The real estate is the property which includes the land and the other resources which comes in the premises of that land whether there is a canal, grassy loan, a mountain, etc. once you buy a real estate you own that for the lifetime and you also have a choice to sale that out at any time of your life.

This is very profit giving business as well. Many of the millionaires are up to this business. They buy real estate properties to make beautiful houses, apartments or restaurant any many other things. From there, they earn a handsome amount of money and the best part is that they can freely sale that out whenever they find it feasible or at the time of need.

There are no or very few chances of loss. It is more profitable n=business. As with the passage of years and years, the price and the value of that property increase not only up to 50% or 100% but also they rose up to the 200% and more than that too. 

What makes them extravagance

When you construct a house, apartment or restaurant at a place that is large enough comprising on acres, in a very artistic and beautiful way that makes them look expensive and luxurious.

Artistic construction

Construction of any building or house counts much. If you design your house well and that gives a look at the very expensive building then the rate of your house or building can be raised by making them expensive property.

Branded furniture

Those buildings which have branded furniture of excellent design and of fine stuff give a more luxurious look. If you are building a house or you want to the sale that or give that for rent then the price of your house can increase if you consciously and prudently choose the right collection of furniture and the other accessories of your house.

Marketing and Social Media

Once you have a luxury real estate property and you want to earn from that you have to start marketing. You can make a blog or website and also you can make a page on Facebook to promote or advertise your property. It depends on how well you convince your audience. You have to make them satisfied. Marketing is most important; it can get you more profit as compared when you do not go for such advertising and marketing.

Social media

The best idea for marketing is to launch social media outlets. There are many social media resources which can help you in marketing. Here is the list:

Facebook

This is the best way to promote your business and property. It is used almost all around the world all around the clock. You can make a page where you can post pictures or videos along with the descriptions.

Instagram

Instagram can assist you in linking with the high profile people who are really interested to buy your property.

LinkedIn

This is already a high profile channel of social media. Here, business tycoons’ profile is created and this is the most reliable of all.

Google-your business

This search engine is helpful in accelerating your business. In addition to that, you can find the lists of sellers and buyers.

Blogs

You can create your own blog where you can give a detailed description of your property and can convince the interested buyer.

Twitter

On Twitter, you can also attract the audience. It is also a source of marketing enabling you to promote easily and quickly.

On the whole, you are required to publish snaps or videos of your property in high quality to give your audience a good and sound impression.

Best places in the UK for luxurious real estate investment

The United Kingdom is well known for its luxurious apartment and real estate properties. Even in the UK, there are different places which are renowned for such fascinating properties where you can invest and earn to live by.

Here is the list of few of the places in the UK:

  • Belgravia
  • Eaton Place
  • Oxshott Surrey
  • Lonsdale Road
  • Atrium Apartment St Johns’ wood
  • Marlborough Place
  • Wellington Court
  • Fairmile Court
  • Princes Gate Court
  • Burley
  • Redwood
  • Alexander Place

You can invest in these places. These are sure to earn you profits. These are high profile places where no investor can go in a loss.  All you need to do is find a good real estate agency and they will handle everything for you.

Real estate investment and promising turnover

Future plans are inevitable to be made. But, what if your plans are big enough that demand a lot more money than what you have and you will have in the future. To avoid this you need a proper plan to invest in something that would cost less and return big rewards.

People invest in areas that suit them the most. Some invest according to the budget, some make investments on the basis of their skills and talents, while some people think about what would give them the most profit before making investment decisions. If you are one of those looking to make a secure and highly profitable investment then investing in the real estate is the best option for you.

Real estate

Real estate means the properties of lands and buildings. Real estate investment is a great sort of investment in a sense. It is very profitable if the rate or price of that property increases over time and in fact, the worth and value of most of the properties increase most of the times. It is a long term process. Once you buy any real estate after that you can own that for many of the years as long as you want to and also you can sell that whenever you want. Not only this, but also you can do more investment on that property by making a house, or a hotel or restaurant, or any other site. This is called single site investment with double profit.  Most of the people confuse the real estate property with the personal property so you should first understand the clear cut difference between the personal property and the real estate.

Personal property

The property which you own personally like clothes, shoes, furniture, your money, your personal assets and accessories which you use in your everyday life is your personal property. It is quite possible that you may not share your personal property with anyone else at any cost.

What to buy and invest

With the business approach, what every businessman wants is profit. So there are many things you can make on your real estate. You can construct commercial and residential buildings. These are easier and more beneficial ways of investment. You keep your own and along with that you get fair, lease or can earn money from another sort of partial or full investments. 

Make sure the property you are going to buy is well suited for the business or is best for residential purposes. You can take help from a well-established real estate agency that will make sure your investment is not wasted.

Where to make investments

Northampton

Northampton is best known for real estate investment. In this area, the sale rate of houses is larger than any other area of the UK. So if you have ample amount of money and you are looking after the best place for investment then you should not waste time in further searching the web.

Leicester

The most promising and profitable area after Northampton is Leicester. It is also good for buying houses and lands. People come at this place for work and find houses occasionally to live in. there are many investors who are already up to this business.

Warrington

Near Manchester is worth considering the place and is very suitable for investment. As there is situated an Amazon warehouse and furthermore, there are chances of a building more warehouses with promising future and job opportunities which on the other side of the coin can be thought that there will come more people from the country and the world at large to live and work there. With increasing job opportunities, the profit of investors also increases. This is the most promising and profitable place for real estate investment.

Coventry

Among other best places, Coventry is also a best choice for investment in terms of house price growth. The prices of houses increase by double and triple times. This place can never give you lose as it is one of the busiest places where people come and work to earn their livings.

Halifax

Halifax is also worth considering place for making an investment. This place is a junction to which different cities attach and locals and visitors move from this place to other places via trains. Apart from residential businesses other small businesses also have scope here.

What vendors look for in an Estate Agency

They could be dreaming of an upgrade, a new location or under pressure to move for a host of personal or professional reasons, but what they look for is always the same. Vendors want the best service, the best price and their house to be sold as quickly as possible. So how can you show prospects that you are the agency to do just that?

  1. Reputation. It gets you on a vendor’s radar, and it builds their confidence that your agency is capable and known to provide a seamless service. Word of mouth plays an invaluable role here and it pays to harness the power of your social media accounts. Social is your reputation sounding board; keep an ear to any conversations about your agency and share your successes and glowing testimonials online.
  2. Trust. Never underestimate what an emotionally-driven time selling a house is. Prospects will be turning to friends and family looking for the recommendation that will give them confidence during this stress-filled process. So focus on building long-term relationships rather than one-off transactions with clients to increase the chances of them doing business with you and providing a trusted recommendation to friends and family. Statistically it’s the biggest reason why vendors choose an agent and they need to be given a strong reason to trust you. 
  3. Exposure. Is your website easily found? Do you have a strong following on social media? Are your branches attractive and inviting to prospects? Prove that you can market their property effectively by first marketing yourself well.
  4. Presentation. Vendors will be taking a critical eye to how you present listings both on and offline. They want assurance that you have all the necessary tools to hand and their home will be advertised in a professional and attractive way.
  5. Knowledge. Are you realistic about what the market can achieve? Do you truly understand the local area and its potential? Demonstrate to prospective vendors your thorough understanding of the market, keep up to date with the latest market and finance news, property blogs and get involved in discussions online. 
  6. Experience. When speaking to a prospective vendor, prove your experience by talking through some great recent examples of sales and chat through any similar properties to the client. Through your experience and work in the area, you are more than likely to have a selection of potential buyers who may be interested in a property like theirs. 

The bottom line: Logical factors aside, vendors will listen to their gut, ’Do I trust these people and feel comfortable giving them my home to sell?’

Make sure you’ve done everything you can to influence that gut feeling. 

5 inspiring blogs for Estate Agents

Blogs are a fantastic way for Estate Agents to share ideas, show their personality and establish themselves as experts in their region. Read on to find inspiration for your own blog and keep up to date with the latest news and views in Estate Agency:

PDQ Property 

Headed by media savvy estate agent Chris Wood, PDQ were ranked in The Telegraph’s top ten small estate agencies last year. If you’re looking for informed views from an agent’s perspective this is the place to visit.

JDG Estate Agents

This Lancashire based team do a great job of showing their years of experience and in-depth understanding of the market on this brilliant blog. With a great balance of tips and advice it’s definitely worth checking out for anyone looking to sell a property.

Hunters

Hunters are a bit different in their approach to blogging, offering different pages for news, region and lifestyle. With a bit of a broader focus there is lots here for home owners generally from choosing the best flooring to views on the shifting housing market.

Sam Ashdown

Sam may not actually be an agent, but she definitely warrants a place on our list. Her page offers a wealth of tips and advice to help Estate Agents maximise their marketing efforts and grow their business. 

VMOVE Estate Agents

Bursting with enthusiasm and ideas, VMove’s blog is an excellent example of what agents can do with blogging. Agent Victoria Green updates the page regularly with well presented points and practical tips with personality that make it a must read for sellers.