Spring is in the air!
It's spring at last! March is that time of year when we normally look forward with optimism to the months ahead. This time around, I can safely say that feeling is more pronounced than ever. It has been a very long, dark winter but now it’s over and we will soon be emerging from lockdown too. As a result everything is starting to look an awful lot brighter. The children are already back at school; we are being offered the vaccine at an incredible rate; pub gardens and restaurants with any outside space are starting to get booked up; and there are some impressive waiting lists growing for the re-opening of hairdressers and barbers as the April rule changes approach! Even the weather seems to be getting in on the act with the thermometer slowly edging upwards.
And there was more good news from the Budget. Many had predicted that the Chancellor would substantially increase capital gains tax – matching it to our income tax bands. It would have been a serious blow to landlords if this prediction had proved correct, many of whom would have had to pay it at the higher rate of 40% when they sold their properties. In an attempt to avoid the rise, quite a few landlords had already used the stamp duty holiday to sell some of their properties. There were audible sighs of relief when it was announced the tax would remain unchanged.
It’s perhaps those who aspire to owning their own homes who will be the most pleased by the budget, with the introduction of the Mortgage Guarantee Scheme for 95% LTV loans on homes of up to £600,000. Access to mortgages for those with smaller deposits has been problematic since the beginning of the pandemic. This may well begin to reverse that process and at the same time, release a good deal of pent-up demand. Additionally, any of those renters and buyers who had been reluctant to move during the pandemic lockdown are likely to burst onto the market when all the remaining restrictions are lifted on 21st June. I think we are all looking forward to that day and I suspect there may be a party or two (or three or four!) to celebrate.
Spring is the traditional property sales market and this year’s market started early. In the first quarter of 2021 we have already sold twice as much property as we sold in the first three months of 2020, even though Boris didn’t tell us all to “stay at home” until 23rd March 2020. So moving forward we are confident that the number of sales will slowly pick up through the year as positivity returns.
The lettings market has been slow to pick up momentum in 2021 with a number of landlords deciding to sell up and move on. Enquiry levels are starting to pick up and we are expecting life to return to the rental market once we pass the next roadmap date of 29th March when the “stay at home” slogan will be replaced by “stay local”.
Overseas we are delighted to congratulate our Montenegro partner Milos and his wife Irena on the birth of their son David.
The international team are also pleased to share this magnificent villa located in the exclusive La Zagaleta estate in Benahavis, southern Spain. Nestled amongst scenic golf courses, this superb home provides an all-encompassing secure lifestyle and is available for sale via auction: https://www.finlaybrewerinternational.com/property/residential/for-sale/benahavs/FN216791522. Remote bidding is open between 15th – 20th April 2021.
For those looking for something a bit more low key for you and your family during the warmer months, we have for sale in Montenegro this 3 bedroom apartment with a communal pool and easy access to the beach: https://www.finlaybrewerinternational.com/property/residential/for-sale/becici/FN212758160. Managed services are available, making the property an ideal holiday rental.
Those of us at Finlay Brewer born before 1980 are currently learning how to use social media so do look out for us on Facebook and Instagram as we tread new ground being led by the brilliant younger members of the team. Don’t forget to ‘like’ us if you see what you like!
I’ll be back next month, where by then we should all hopefully have experienced some ‘return to normal’ life.
Teresa
