And so another year comes to an end. It’s a time for reflection but also one of excitement – especially as 2020 heralds a new decade to look forward to. There’s going to be lots going on in the UK next year (did someone say Brexit?), which has got us thinking about the UK property market.
Here at emoov, we’ve put together our wishlist for the year ahead – the things we would like to happen over the next 12 months. Whether you’re thinking of selling, buying, or maybe both, read on and see what we hope the UK property market has in store for 2020.
1) Improved lending options
Stress tests, also known as affordability tests, for mortgages are making it too hard for some people to get a mortgage, according to the Council of Mortgage Lenders (CML). The Financial Policy Committee (FPC) are also in agreement, citing those on low-income as not being able to access housing as a result of stringent lending rules.
Hopefully 2020 will see an element of relaxation on mortgage applications, making it easier for people to borrow money for their new home. So far, the government has been fairly quiet on its plans for housing, but relaxing the lending criteria could provide a nice boost for the UK housing market.
2) Reconsideration of Stamp Duty
Prime minister Boris Johnson previously stated that he wanted to review the current rules around Stamp Duty Land Tax. Now that his government has secured the next five years, it will be interesting to see if he actions on previous comments.
By lowering the top rate and raising the tax-exempt threshold, the government would help free up cash for those looking to buy a new home.
The extra 3% on second-home purchases is also worth reviewing after the news that stamp duty receipts fell by 5.2%.
3) New ideas for house building
The UK needs more new homes – and fast. The current plan is to construct new builds at a rate of 300,000 per year by the mid-2020s. If the government is going to stick to their promise, it will need to be inventive with how it builds new homes.
This is where innovation is required, with building on top of existing structures, using modular homes and accessing more green belt space comprising several options that could help the UK create the homes it needs. 2020 is a new decade, which means it’s time for fresh ideas.
4) More support for buy-to-let
2020 sees the phasing out of tax relief on mortgage interest, with a base rate of 20% replacing the current system. Wear and tear allowance has also been cut from 10% to the cost of any replacement furniture. With the private rental market set to account for a quarter of all UK homes by 2021, more needs to be done for private landlords.
Some of the ways that can make things a little easier for landlords is by removing the responsivity of right to rent checks, with local authorities taking over. A review of the current mortgage tax relief system should also be undertaken, though it’s unlikely that will happen this year.
5) Continuation of digital home buying
Market share for online estate agents is growing year-on-year, and we believe this is a reflection of a mood change for buyers and sellers in the market. 2020 will see a continuation of that trend, with online agents improving their products further to offer a digital-led approach that is fully wrapped in the human touch.
At emoov, we understand the importance of having a touchpoint with a live property professional who can guide you and offer expert advice but still having the flexibility to manage your property sale as you see best. As industries become more digitised, we’re well placed to lead the way for the online property market, providing an all-encompassing service to our customers.
Looking to the future
We might not be riding hoverboards to work, but the future is very much here – and emoov is bringing home selling firmly into the 21st-century. If you’re thinking of selling your property, request a callback with one of our dedicated experts. They will make sure the year starts off on the right foot by helping you get the best sale for your home.