So, What Exactly Do Tier 4 Restrictions Mean for the UK Property Market?

"Price of Houses in the UK" by Images_of_Money is licensed under CC BY 2.0

As we enter the festive period in 2020, lockdowns have become the new norm. Not for the first time, Boris et al have decided to tinker with the rules and have introduced a 4th tier to the existing 3 tier system, with much of England going into it from Boxing Day.

So, what does it mean for the housing market? Will it impact on the surprisingly buoyant UK housing market? Will it stop people being able to buy and sell homes before the stamp duty holiday ends?  That’s precisely what we look at here.

Well….It’s Good News

Under tier 4 restrictions, non-essential shops are closing, but the good news is that estate agents are able to continue to operate throughout all tiers and that includes being able to go into people’s homes. Crucially, that also extends to other tradesmen like conveyancers and removal firms.

According to Housing Secretary Robert Jenrick who took Twitter to make the announcement:

“Sales and rental markets remain open in all tiers. All activities are able to continue as before. Follow Covid advice and use judgement as to whether it’s necessary”.

"Robert Jenrick MP.jpg" by Stuart.graham is marked with CC0 1.0

Why Was the Change Needed?

The decision to introduce this supplementary tier was made in response to a big surge in new Covid-19 cases and there was growing concern that the spread of virus could quickly get out of control. People are still going to be able to move outside the home, but they will only be able to do so for specific reasons.

So, unlimited exercise and trips out for provisions - but nothing else. This will be reviewed again on the 30th of December, but the feeling is that these rules could be in place for many months to come as the government attempts to get the new Covid-19 strain under control.

The Government Is Prioritising the Housing Market

The reason for this concession from the government is that it’s very much prioritising the needs of the housing market as it sees it as an important part of the UK’s economy. Along with the construction of new homes, the property market will surely play a pivotal role in the UK’s recovery in 2021.

 This is particularly important for those home seekers looking to make the most of the stamp duty holiday. Some welcome news indeed at a time when much is uncertain.

Investing in Property Still Represents a Good Move

The housing market has been quite buoyant over the last few months despite the chaos that Covid-19 has caused and this is just the kind of shot in the arm that was needed to keep things going. So, if you were planning on taking advantage of house buying conditions that exist up to the end of March 2021, there’s no reason why Tier 4 should get in the way.

2020 has seen a big jump in demand, with over £60bn in properties having changed hands, representing a 25% increase from the year before. Lockdowns have made people think, for sure, but it’s done nothing to slow this progress down, making property investment still look like a pretty wise investment going forwards into the New Year.

We’re in the property development game ourselves at FS Properties, so we’re watching the market closely just like you. We have a number of developments across London and we bring you articles like this one to help you make wiser buying decisions. If you would like to read more blogs like this one or find out more about us, visit us online at www.fsproperties.co.uk.

 Alternatively, if you would like to talk to us about anything relating to property development or investment, call us today on 020 8771 3787. All that remains is for us to wish you a Happy Christmas and a prosperous New Year.