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In the United Kingdom, the real estate market in July saw its biggest increase in ten years, according to a study by Rightmove, leader of real estate advertising sites in the country, published on Monday August 17th. A boom that cannot be explained only by the aspirations of the British in these times of pandemic.
Despite the coronavirus pandemic, sales compromises amounted to £ 37bn, or € 40bn, in some high-demand areas of the country, while they fell 2% in London, a larger market. international.
With the rise of teleworking, many Britons are now prioritizing space and quality of life in the countryside or by the sea, in Devon or Cornwall, mainly in the south-east of England, according to Rightmove. But this real estate boom, in the middle of summer, a period of slowdown for this market traditionally, can be explained above all because a large number of sale and purchase projects have finally materialized.
« The popular idea in the media that the British are moving from London to the provinces is not yet proven, in my opinion. I especially think that a lot of people who were about to buy or sell in the region had to wait because of the Covid-19 and this horrible thing called Brexit which created a climate of uncertainty ”, Estimates Russel Quirk, expert in real estate.
Suspension of the tax on real estate transactions
For the latter, ” these people finally put their project into action ». « You should know that in the United Kingdom, transactions on properties are taxed, he continues. And this tax has exploded in twenty years. It is 15% today while it was only 1% a few years ago. So when the Minister of Economy, Rishi Sunaka, decided three or four weeks ago to suspend it until the end of March next year, people who were hesitant decided to buy because they can save about 16 500 euros, and for them it’s worth it. »
Russel Quirk nevertheless wonders what will happen on March 31, 2021, when this property tax, which brings in 10 billion euros per year to the British state, will be reintroduced.
► Also to listen : The crazy escalation of real estate prices in Europe
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