Why London Landlords are Selling Due to COVID-19
2020 has been a worrying year for landlords in London and around the UK because of the lockdown put in place due to COVID-19. If you are a landlord, you could be worried that your tenants cannot pay the rent, and be concerned over the difficulty of doing things like repairs and maintenance during the rules to prevent the spread of the novel coronavirus. So, in this unprecedented climate, many landlords are beginning to sell their properties.
London Landlords Are Increasingly Selling Their Properties as Buy to Lets
If your present tenants have a current tenancy agreement in place, then it can be tricky to remove them, as you could have to go through the system of waiting for a section 8 to be enforced. Therefore, one of the best solutions for London landlords is to sell a property to another landlord or as a Buy to Let.
Selling with sitting tenants can be an easier way of selling your property during the current climate, and it is also good news for buyers who want renters in the properties. Another benefit to you is that you can still receive rent from your tenants right up until the completion of the sale. By selling your property as a Buy to Let with sitting tenants, you can also avoid a number of logistical issues. For instance, there is no need to hand over keys to new tenants, and there is no chain to impact the sale. However, if you are concerned about getting into a chain from selling your property, there are steps you can take to avoid it. Check out this article to learn more.
People Are Buying More London Properties Due to the Stamp Duty Reduction
During the national lockdown, Britain’s housing market lost £27 billion in sales. But the housing market is now starting to move again. That is largely due to the wavering and reduction of stamp duty. Buyers who spend £500,000 or less on properties in England and Northern Ireland do not need to pay stamp duty, while people buying more expensive homes can also benefit from reduced costs. The new rules will last until March 2021, which means there has recently been a boost in property sales in London and elsewhere. Scotland and Wales have also introduced their own stamp duty cuts.
The Areas in London Where People Are Buying Properties the Most
With buyers looking to get a deal before stamp duty rises again, London properties are in hot demand. The largest savings for buyers, in proportion to local house prices in London, are currently in the outer boroughs and the commuter belt. In areas such as Spelthorne, home buyers are typically saving 2.5% on property prices. Buyer demand around the country has also jumped recently. According to Zoopla, inquiries have risen by 46% above pre-lockdown levels, and sales are now 4% above the level seen at the start of March. So, with people actively looking to purchase properties again, it is an ideal time to consider selling your property in the London area.
Communicating with Your Tenants
Once you have decided you will sell your property, an estate agent will be able to guide you through each step of the process. But do not forget to communicate with your tenants about what is going on. You also need to make sure they will leave in a smooth and unproblematic fashion, if you are not selling the property to another landlord. If you are selling your property as a Buy to Let and the tenants are staying in situ, it is also important that they are kept abreast of what is going on.