The extension of the temporary tax break has reinvigorated the UK housing market. The Royal Institution of Chartered Surveyors (RICS) recorded a jump in UK homebuyers–the highest since September.
Although the latest House Price Index reflected a dip in March, property analysts attribute the slowdown to the original 31 March deadline of the stamp duty holiday. Fortunately, Chancellor of the Exchequer Rishi Sunak has since extended the tax break until 30 June and activity indicators have since reflected a rebound.
Lockdown-weary Brits are taking this opportunity to find bigger, greener spaces for a better quality of life. As a result, demand is exceeding supply even in rental properties. This has forced some UK landlords to decline tenants due to limited listings.
Respondents of the recent RICS survey expect rents to increase by 3% in the coming year, but London’s rental market will likely remain. In addition, introducing more lockdowns could further delay central London’s recovery.
Despite the grim outlook, several big London developments are providing optimism for economic recovery in the UK’s capital. Global real estate firm JLL recently signed a lease agreement for a 134,000 sq ft site in central London as their flagship office in the UK. The company envisions the site to become a world-class campus that is both sustainable and technologically advanced.
Another promising development is the much-awaited them park and resort, The London Resort, currently undergoing the examination phase. Despite several hiccups and the pandemic delaying the project, the developers are forging ahead with plans to create “the entertainment destination of the future” complete with a theme park, an indoor waterpark, luxury hotels, shops, and entertainment centres.
The London Resort hopes to open its first gate in 2024 with plenty of time for investors to stake a claim in a vibrant post-pandemic Britain.
London has also proved resilient as it remained the biggest financial hub in Europe, landing second globally in the latest Global Financial Centres Index. These positive developments show the UK’s forward motion in their “Global Britain” vision.
