7 Post-Pandemic Predictions For The Property Market
If you are considering moving post-lockdown, you may be wondering what the property market is going to look like over the coming months – and you’re not alone.
Business growth consultant Daniel Groves shares his predictions for the post-pandemic property market with Finance Monthly.
Everyone with an interest in property is asking the same questions as you. So, in today’s article, we are going to share our top seven post-pandemic predictions for the property market so that you can know what to expect.
House Prices Hit A Record High
Early last year, the coronavirus pandemic set the property market spinning when the country was forced to lockdown for months on end, seeing more people than ever before put their moving plans on hold. Since the latest easing of lockdown restrictions paired with the economy slowly picking up, buyers can expect to face the highest ever property prices. Furthermore, Gary Whitehead from Town & Country Mortgage Services says, “The market has been stimulated by so many positive things all coming together at once, such as the government stamp duty incentive, the return of 95% LTV mortgages again, all [of this] brings further confidence back to what was already a very buoyant marketplace,” says Whitehead. “So many buyers simply needing more space, a garden, an office to work from home, etc, has meant the scramble for property has left a shortage of housing stock, meaning demand is outstripping supply which will always drive up prices. We feel this trend is set to continue in the short term at least until the world gets back to a ‘new-norm'”. So, if you’re looking to buy and have the means, you’ll need to be quick off the mark and ready to move more swiftly than ever before to secure a new property.
More Overseas Property Investors
For the property market to recover in a post-lockdown world, we expect to see a rise in overseas buyers coming to aid in our time of financial instability. Property experts suspect there will be further investments from Asia and the Middle East into the UK’s property market, and, in a post-lockdown landscape, their investments will be welcomed with open arms. Investments into new home developments and the construction sector are also expected to boom post-lockdown, providing that extra income our economy desperately needs to get back on track.
Country Locations Increase In Popularity
As remote working has dominated the UK throughout the coronavirus pandemic, with many businesses shutting their office spaces for good, many people are moving away from the cities and into the countryside. Interest in rural locations has increased significantly as people seek more space for a driveway and a garden or perhaps even an outhouse to convert into a remote office space.
More Space For Remote Workers
Speaking of remote workers, after almost a year closed indoors, working from the kitchen table or at the end of the bed, people are longing for more space to enjoy. Working from home can be a lot, especially without a dedicated office space. And with remote working set to continue for the long-term, the desire for more space will encourage homeowners to seek out larger properties with more bedrooms and a garden. As such, properties with spare bedrooms that can be transformed into remote offices are predicted to be in high demand.
Property Viewings Set To Change
While this has already changed during the lockdown, property viewings are set to be even more impacted as agents have to adapt the way they market homes in a post-lockdown world. Social distancing will be mandatory, as will facemasks, but many estate agents will also need to increase their technical abilities to provide virtual viewings for the long term. In a post-lockdown world, we estimate that virtual viewings will be here to stay. While there is no comparison to seeing a property in person, virtual viewings allow buyers to get a sense of a property virtually before visiting in person, saving time for both the seller and the agent.
A Delay In Rent Payments
Lockdown has had a severe impact on businesses around the UK, causing even some of the biggest brands to close their doors to customers for good. The multiple lockdowns and numerous restrictions have caused a rise in rent arrears for retail properties. This has meant many landlords have had to miss or defer one to two-quarters of rent payments. This is expected to be a long-term trend that will possibly cause a knock-on effect on the capital value of many retail properties. As we enter a post-lockdown world, we hope that shops will start to reopen their doors but imagine uptake will be slow as people brave human contact again and shopping in-person slowly increases.
Commercial Spaces Transformed Into Residential
The number of remote workers in the UK has never been higher. Due to lockdown, office workers have retreated to their homes to work, leaving many commercial spaces empty. This is having a significant effect on property values and could influence the commercial sector significantly. The office market has always adapted to the changing environment. However, as London has seen many of its offices close permanently as remote working is accepted for the long term, many commercial spaces are being transformed back into residential properties to help close the financial gap.
The coronavirus pandemic has seen the world live through unprecedented times, causing upheavals to every element of our personal, working, and social lives – and the housing market has not gone unscathed. However, it will be interesting to see how property markets adapt to these post-pandemic times. If our estimations are correct, we could be seeing a lot more changes over the coming months, so watch this space.