How Property in the North is Bouncing Back

The UK’s property market has taken a huge hit since the pandemic started as many property buyers have to put their plans on hold. There are some concerns that it could take years for the UK real estate market to recover. However, in recent weeks, the small regional towns of North England are witnessing a surge in popularity, where demands for homes in the quieter areas have outpaced that in the larger cities.

Here’s why property investment in the North is bouncing back.

 

  1. Government Loans Helping Property Sector

According to some brokers, property buyers are now relying on coronavirus loans to snap up properties, which has artificially inflated the cost of properties in the North. People from London have been coming up to the North and buying properties without even checking them since they have their “bounce back money” ready to spend. Due to the availability of funds, these buyers are more than willing to pay more for these properties.

The bounce-back loan is a scheme backed by the federal government designed to assist small companies that have been badly hit by the pandemic. This scheme offers loans of up to £50,000, and with no interest fees for the first 12 months. Although debtors are not supposedly allowed to use the “bounce back” cash for private use and the government needs to verify that the cash will be used “wholly for business purposes”, this is a bit troublesome to police.

 

  1. Redesigning of Office Spaces

With thousands of businesses vacating their space due to the pandemic lockdowns, there has been much uncertainty about the future of the office market in the UK. However, there are positive signs in the recent months that the worst may already be over for the commercial market in the North.

Many commercial offices are now being redeveloped by innovative commercial property architects to fit into the new trend and make them more flexible and spacious. In addition, some developers are choosing to invest more into green space in favour of machinery. For instance, one company is thinking of using its spacious lot to create a campus-like hub and provide employees plenty of outdoor spaces to minimize the risk of virus transmission. Others are choosing to take out those old office cubicles and replace them with private offices. Now that the country is rolling out Covid vaccines very rapidly and restrictions are being lifted gradually, it won’t be long before these office spaces will be occupied again.

 

  1. Residential Development Boom

Not only is the real estate market booming in sales but home remodelling companies in the North have also reported an increase in projects over the past few months. Even landscape contractors and patio professionals have experienced a great demand for their services. That’s because many people have saved enough money from not going out on holidays or not eating out due to government-imposed lockdowns.

Many homeowners have decided to put the money they have saved to good use by increasing the value of their home properties through renovations, such as upgrading their kitchens and bathrooms, adding deck or patio, landscaping, and more. By renovating their homes, homeowners are hoping that they will be able to work their way back up the property ladder.