Loans up to 1000
Many private landlords are struggling to make ends meet, racking up mortgage holidays and experiencing a significant reduction in their rental income. In a body blow for many private landlords, the UK government has announced the introduction of a six month period notice for eviction. This effectively means that landlords will be unable to sell their properties until mid-March 2021 (at best). The problem is, in the current environment, with the constant threat of another wave of the coronavirus, few property investors will be keen to acquire private tenants as well. When private landlords are eventually able to sell their properties, might they flood the market? At the same time the UK government has announced a number of exceptions to the new eviction rules.
Unless private landlords are given solid long-term financial assistance by the government that final notice could be telling! There are many reasons why the UK property market should be in the doldrums. However, recent figures from the Nationwide Building Society show average UK house prices loans up to 1000 are now at an small unsecured loans all-time high. Quite how long this will last remains to be seen, with many property experts scratching their heads in amazement. There lies another issue for private landlords will they miss out on the property boom? It is fair to say that many employers are holding on for this final windfall. At some point financial assistance for the UK business sector will be withdrawn.
Unfortunately this is likely to lead to a significant increase in unemployment with a knock-on effect to the housing market and affordability.
The UK private rental market has become a cash cow for the loans up to 1000 government, and an easy target for politicians looking to curry favour with voters. Once unsecured bad credit personal loans you strip away the misleading comments, misunderstandings and downright lies, these are investors who plugged a huge gap left by the UK government and local authorities. There is still a significant housing shortage in the UK, but loans up to 1000 this would have been much worse without the growth seen in the private rental market since the 1980s.
So, it is safe to say that private landlords have bailed out the government and local authorities on numerous occasions. They have asked for no favours, and received none, instead single mother loans hoping forlornly for a level playing field. When HMRC released residential property transaction numbers today it was no surprise to see a huge drop.
These cover the period for April 2020 with many experts predicting that figures for May 2020 will be even worse.
That said, the UK government recently released the UK property market from its paralysis and there are encouraging signs that pent-up demand is building. It is inconceivable to suggest that figures for May will show any sign of improvement because while the lockdown has been partially lifted, it will take a long time for the wheels of commerce to start moving again. So, we have written off April and now we should look towards writing off May but what about June? A number of mortgage brokers are already reporting signs of pent-up demand amongst property investors. At this point it is worth remembering that UK base rates recently fell to 0. This would effectively make finance even cheaper and discourage those with liquidity from playing safe loans up to 1000 with deposit accounts.
So, how should we expect the UK property market to progress from here on in? It will be interesting to see whether the UK government repeals any recent property tax increases or introduces any further financial assistance for first-time buyers.
They will probably wait until the dust has settled to see how the market reacts and then look towards further confidence boosting incentives.
Therefore, it is inevitable that we will see a number of bargain seekers hunting for distressed sellers in the weeks and months ahead. Whether there will be significant liquidity in this area of the market to fulfil demand remains to be seen. Many will argue that property prices were already depressed ahead of the Brexit negotiations while others will point towards the subdued economic outlook. The reality is that demand for UK property will remain relatively strong in the medium to long term. We may see some bumps in the road in the short term, Brexit disappointments and a potential no credit check loan second wave pandemic but you could argue these worst-case scenarios are already factored into property prices.
So, will those long-term property buyers who have confidence in the UK property market have the courage of their convictions? It will probably come as no surprise to learn that as the UK begins to leave the coronavirus lockdown there has been a surge in demand for bungalows. Whether renting or looking to purchase property, it looks as though the highly contagious virus has prompted a change in UK property buying patterns. Is this a sign of things to come or just a knee-jerk reaction to Covid-19? Prior to the coronavirus pandemic, houses and flats were the two most popular types of property in the UK.
In a perfect world we would all have more space in which to live, more privacy and when it comes to challenges such as the coronavirus, more protection.
Those who believe we will see huge changes in the style of flat developments going forwards are kidding themselves. Money talks at the end of the day and if more people want houses and bungalows they will need to pay the price. In the short term we may see continued growth in demand for houses and bungalows as investors and tenants look for additional protection against the coronavirus going forward.
Unfortunately, when prices and rent levels are pushed towards unsustainable levels the economic realities will hit home.
While much of the focus has been on the private rental market and the impact on private landlords and tenants, maybe we should look at social housing. Since the 1980s when the right to buy scheme was introduced by the then Conservative government, successive governments have continued with this huge sell-off. It was only recently that some areas of the UK withdrew the right to buy council housing despite the fact this had been decimating social housing stock for years. So, how will social housing be impacted by the coronavirus going forward? It has been common knowledge for many years now that councils up and down the country have been running on relatively low levels of social housing.
As a consequence, when more and more private tenants are unable to cover their monthly rental we will see even greater demand for social housing stock. As with private landlords, many of whom are facing significant write-offs against tenant rental arrears it is safe to say that many councils will also face similar challenges. However, behind-the-scenes councils are ready for a deluge of cries for assistance once the lockdown is over and the economic impact becomes clearer. In many ways this is a double whammy for local authorities, many will need to write off rent arrears and tenants will need to use the universal credit system to cover rental payments in the future. This in turn will impact taxpayers who will see their direct and indirect state contributions increase for many years to come.
If we cast our minds back to the December 2019 election, Boris Johnson made huge promises with regards to social housing (as did all parties) and affordable properties. While this was supposed to be spread over the next five years, there are growing demands for as much of this money as possible to be released now. What we do know is that with social housing stock in limited supply, this will place greater pressure on the private rental sector. However, this is a sector which has been hit hard with tighter regulations and ever-growing tax liabilities in easy to get loans with bad credit recent years.
While nobody could have foreseen the huge health, economic and social consequences of the coronavirus, a lack of planning by the UK government and local authorities has been laid bare. This will almost certainly place greater pressure on the private rental market and normally the authorities would sweeten this pill with reduced taxation. However, in the short to medium term government debt needs paid back, interest will pick up significantly and tax income streams have been decimated. In a rather bizarre turnaround, data on the London property market suggests that high-end properties are much in demand. This comes on the back of a crippling lockdown and Brexit negotiations which seem to go from one disaster to another.
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