Despite the pandemic, 2020 was a busy year for entrepreneurs, with just under half a million new businesses being registered over the course of the year. While there is economic uncertainty, the pandemic may have led people to rethink their livelihoods, and many might have looked into starting a new business as a way to supplement their income.
Not entirely surprising, retail, including online stores, led the way with 22,000 new registrations followed by management consultancies with 16,000 and buying and selling real estate with 16,000.
These are all sectors that could thrive even during the pandemic with eCommerce soaring, businesses in need of expert advice, and people looking to buy and sell the property.
Real Estate & The Stamp Duty Holiday
In terms of real estate, it is interesting to see so many new businesses registered, and there are a few reasons why so many people turned to this to make money in 2020 and beyond.
One of the biggest reasons why so many have turned to real estate is the stamp duty holiday, which was recently extended to the end of June and allowed people to save a fortune when buying a new property.
Ordinarily, stamp duty is paid on properties sold for more than £125,000 but was increased last summer by the government to £500,000. This tax break will also stimulate the property market and boost enthusiasm for buying and selling.
Time for Renovation
It is thought that another reason why people have turned to real estate during the pandemic is that they have more time on their hands to complete renovation projects. With people limited as to what they can do and so much of the economy closed, renovations can be a great way to use the time while staying safe, and there are lots of projects that people can complete themselves.
The potential returns from flipping a property will be another enticing factor. When people may have financial concerns, the returns will be very appealing, particularly when you consider that this can be a project on the main job side. Real estate can make a lot of financial sense even during turbulent and uncertain times like these.
It is interesting to see so many people starting new businesses during the pandemic and the sectors that people have chosen. Real estate certainly could be a good choice for people looking to earn another revenue stream or even as a full-time role, especially right now when property buyers can benefit from the stamp duty holiday along with people having more time on their hands than normal to renovate and flip properties.