How has COVID-19 Affected the Property Market Now and In the Future?

In March 2020, Britons were ordered into a nationwide lockdown, triggering drastic and unprecedented developments in the property market. Immediate effects of the pandemic included a halt in property sales and inherently the largest decrease in property prices since 2011, creating an economic uncertainty to be reckoned with. Whilst these effects immediately appear negative, there are many consequences of the pandemic which should be viewed in a positive light with regards to the property market.

Despite the immediate fall in house prices, the market quickly recovered. Statistics suggested that the market reached a new record peak by November 2020, mainly stimulated by unprecedented support schemes provided by the British government. These included the Stamp Duty Holiday and the Mortgage Guarantee Scheme. With these underpinning schemes, the property market was experiencing a restoration, and many were in the position to purchase their ideal property.

Many office staff in the United Kingdom began working remotely as a result of the virus, which consequently provoked a demand in larger houses with sufficient office and garden space. Rightmove, a leading property agency, reported a significant rise in the number of people searching for homes further from town and city centres. This generated a demand for properties in the leafy London 'villages’, such as in and the surrounding areas of Hertfordshire. Own Homes documented this rural revival and the explosion of the countryside market, and were readily available to assist with these moves.

With many in the city choosing to adopt a new lifestyle and depart from living in the city, it was easier for young adults to access the London property ladder. House prices fell for flats and maisonettes, granting many with the opportunity to purchase affordable housing in London. Whilst this was opportune for those in a position to buy, those who were renting in central areas of cities were hardest hit by the pandemic. Consequently rental prices fell in cities, compensating for the financial difficulties experienced by these tenants.

The introduction of the Covid vaccine has triggered a new hope and Own Homes predicts that the property market should stabilise in the months to come. The schemes which triggered the frenzy in buying have come to an end, leading to this stabilisation.

Furthermore, it is likely that many will choose to remain working remotely in larger properties and companies will adapt to this new style of work. Own Homes has a large portfolio of properties to consider, should you wish to speak to someone today about relocating.

As an independent estate agent in Stevenage, we can make decisions quickly and tailor our property service to meet your specific requirements. Contact us today on 01438 367753 or via sales@own-homes.com.

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