private rented sector property income

Housing market remains open in all tiers after review of restrictions

After reviewing the tier guidelines, the government has announced that buying, selling and letting activities can continue in all four tiers. What does this mean for the housing market?

Following a review of the tier system, renters and homeowners in England are still able to move in all tiers. Estate agents, tradespeople and removal firms are allowed to continue operating by going inside homes. And other professionals in the property industry, such as conveyancers, are also still able to work.

Housing Secretary Robert Jenrick stated on Twitter: “Housing market update: the sales and rental markets remain open in all tiers. All associated activities can continue as before. Please follow the Covid secure guidance. And use your judgment as to whether it’s necessary right now.”

The guidance from the government on moving during the COVID-19 pandemic has not changed. Safety measures, such as social distancing and wearing a face covering, must be followed when viewing properties in any tier. However, many in the property industry recommend using a virtual-first approach.

Newly introduced Tier 4 restrictions

The government has introduced new Tier 4 restrictions for London, the south-east and east of England. This decision was made due to a surge of COVID-19 cases in these areas and the growing concern about a new strain of the virus that is spreading quickly.

In Tier 4, people must not leave or be outside of their home except for when they have a ‘reasonable excuse’, and that includes moving home and going to work. While people are still allowed to move, those outside an individual bubble should not help with moving unless absolutely necessary. The guidance also states that removal firms and estate and letting agents can continue to work in Tier 4.

Another review of the tier system will take place on the 30th of December. However, these new rules could be in place for months as the government tries to bring the new variant of COVID-19 under control.

The housing market plays an important role

The government continues to make the housing market a priority as the sector is an important part of the economy. And the property market, along with housebuilding, can play a pivotal role in the country’s recovery from COVID-19. The sector as a whole has continued to adapt and follow strict social distancing and health and safety guidelines.

Additionally, the announcement of the housing market remaining open allows buyers and sellers to continue with their purchases across England. This is especially important as many are hoping to beat the stamp duty holiday, which is set to end at the end of March and can save buyers up to £15,000.

Strong activity continues in the property market

Despite the rollercoaster year, buyer demand has soared by 40% during 2020, according to Zoopla. The total value of properties changing hands is likely to jump by £62bn by the end of the year. On top of that, sales have been agreed on over £300bn worth of property, which is a 26% increase from 2019.

Housing market activity continues well above average levels for this time of year. And the property boom is expected to spill over into 2021. Successive lockdowns have led many people to re-evaluate their living situations. This is likely to continue with the more stringent restrictions in place in certain parts of the country.

Richard Donnell, director of research and insight at Zoopla, says: “With a long Christmas weekend, and many households isolating in smaller groups, we expect interest in housing to be stronger than usual ahead of the traditional Boxing Day bounce, when interest in housing jumps.

“The ‘once-in-a-lifetime re-assessment of housing’ kickstarted by the pandemic has further to run in our view and this will support demand into 2021.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT