While many aspects of buying and selling a home have not changed over the past year, there are some important factors you may now need to consider in light of the Coronavirus pandemic.
Over the past year there has been a lot of uncertainty across the economic landscape, and so this must be considered before you even think about moving house.
What may have been easily affordable in 2019 might no longer be viable in 2021, so you will need to carefully consider your budget.
Plan out your best and worst case scenarios; what would happen if you had to take a reduction in work hours, or lost your job completely? How would your monthly income be affected if you had to change locations for work, or how much more would you be spending per month if you worked from home permanently? You need to factor all of these possibilities in when planning your budget.
You should also be aware that the housing market is currently facing a shortage of listings, so there’s not as much choice available for buyers. This is great for selling, but you’ll need to weigh up the pros and cons if you are going to get into a chain in 2021.
A few years ago, many people would look at a home and judge the space inside purely on living arrangements. Due to COVID-19, more and more people are now having to consider integrating their workspaces into their homes.
If you are looking to move and also work from home, you will need to assess the potential property from both angles. Does it have an adequate space available for you to work comfortably? Can your job be completed while working in a less than ideal environment, such as a family kitchen or cramped cupboard under the stairs?
If not, then you’ll need to look for a property that not only accommodates your family life but also your working life. A spare room or study earmarked specifically for your job is essential for many workers, but at the same time, you don’t want to give up space that your family needs as well.
When looking at property buying this way, and factoring in your budget research mentioned previously, it becomes clear that more thought than normal needs to go into buying a home in 2021.
When scouting out a location for your next home, there are many standard things to look out for; transport links, garden space, ease of access, and local amenities. You can find a full list of tips for buying your next home on our blog.
However, the events of the last year have added additional factors to consider. The job market for some is not as sturdy as it once was, so if you moved to a new location, would you also be able to find work there too?
You should also consider the local area in terms of the pandemic - has the local high street been affected? Many shops have had to close during the lockdown and, if we were to enter another one soon, would you be able to still source everything you need, or would you need to travel much further afield?
One of the biggest realisations for many during lockdown was how much outdoor space they had, and how they use it. For a lot of people, being cooped up inside their flats or apartments 24/7 was a wake-up call and the realisation that they wanted a space outside they could call their own. For others, they realised that the space they did have was not being utilised fully.
When looking to buy a new home in 2021, you may want to put more emphasis on the garden space you want and bring it to the top of your ‘must-have’ list. If we were to enter another lockdown, would you be happy with little or no garden space? Or would you need a large garden and ample parking instead?
Until the end of June, you can benefit from a stamp duty holiday on properties up to £500,000. Due to the Coronavirus pandemic, the UK Government has implemented this reduction in order to stimulate the housing market, so if you are looking to buy quickly, this could save you a lot of money.
For example, on a property costing £200,000, you previously would have paid £1,500 in stamp duty. With the stamp duty holiday, you now pay £0!
Another benefit to come out of the recent pandemic is the Government’s new 5% deposit home loan guarantee scheme. This will be available to current homeowners as well as first-time buyers who are looking to buy a house for up to £600,000.
It’s not a magic bullet, as it can mean paying off the mortgage over a longer period of time, and interest rates can change, but it does open the door of homeownership to a lot more people.
You can also still qualify for Lifetime ISAs. They are available for those over 18 and under 40, and you can put up to £4,000 each year until the age of 50. The government will also add a 25% bonus to your savings, up to a maximum of £1,000 per year. You can find out more on the Government website.
For more information about buying a house in 2021, contact the expert team at Argyle Estate Agents who are ready to help you get onto the market and into your perfect home.
