Impact of COVID-19 ON UK HOUSING MARKET: Will the momentum be sustainable?

UK real estate market (5-10%) saw an extraordinary activity level as the lockdown was lifted for the first time. A statistical analysis based on web visits, buyer behaviour, instructions and views indicated that the future real estate activity would rise higher. However, this raises some questions. 

  • What is truly going on?  
  • Is everything bare cruising for purchasers and venders the same?  
  • What variables are affecting everything?  
  • Will the most recent limitations upset this uprise? 
  •  Also, is the upswing truly manageable? 

Beforehand repressed transactional activity started building up as the real estate market resumed its work. However, the noteworthy thing is that this recovery is quite different from the one that prevailed after the global financial crisis (2008). This time the fast flood in sales isn’t being coordinated by ensuing expansions in property costs across our significant business sectors; neither do we anticipate that this should occur in short to medium term. This time, buyers have no hustle of buying to chase a decreasing stock that typically results in raising the prices.   

There is no massive rise in purchaser interest in the present market, and an incredible number of new properties are being dispatched on to the market. People have had to stay in their homes during this pandemic, and many of them got a chance to think of suitable places to live where they would love to spend their lives. This led to many of them making their homes available for sale. 

Without a doubt, a considerable lot of our discretional sellers who were formerly neglecting to move and waiting or the Brexit vulnerability to pass are currently putting personal satisfaction first and settling on the choice to move. We’re seeing many buyers this year than the previous ones as now they can choose from variable property options. We foresee that this sound arrangement of a balance between demand and supply will keep costs stable. This trend will sustain for quite a while, although there might be a rise in the property’s expenses based on their desirable location all across the UK. 

The real estate market has strong property offers for buyers, and a record number of purchasers have had their offers acknowledged and are holding up in expectation to move into their new homes.  Several factors contribute to making this process slow. Several people are involved in a house buying or selling. Real estate agents are regularly having discussions with brokers, surveyors, attorneys, and lenders all across the country. Most conveyancers are presently working at a full limit to take these actions occur after the lockdown period. Therefore, to obtain a survey, a buyer may have to wait for four weeks in England and Wales. This will mainly impact sellers and buyers. So, to maintain the targeted sales, a real estate agent has to do a full-time job. 

In August, 28% monthly increase in the number of mortgage approval data of the Bank of England was observed, being at the highest levels since Oct 2007, nearly 29 per cent higher than the same month a year ago. Having just met their loaning targets, the bid lenders are starting to pull out a portion of their more valuable products enabling themselves to choose the amount they will loan and to whom carefully.  

The present stamp duty holiday until 31 March 2021 is undoubtedly having its influence in fuelling interest for housing property in England and Wales. While the support of Scottish Land and Buildings Transaction Tax (LBTT)is restricted to the lower end of the market, getting house across all varied price-groups in England and Wales has gotten impressively more reasonable. Anyway, by its actual nature, this instrument to help the real estate market is time-restricted, and it will be intriguing to perceive what happens following its withdrawal. 

However, it is encouraging that uprise in sales has maintained UK costs, although an increased interest in properties by international visitors from Canada, Germany and the Middle East was seen. This gives off an impression of international buyers’ interests in Uk property who wish to come here as the travelling restriction is diminished. Regardless of the most recent limitations, individuals will have the option to lease and purchase as housing is being perceived as an essential sector by governments. To keep the people safe from the pandemic, various extra protocols are being introduced, including: 

  • Confining the quantities of those going to a survey 
  • The compulsory wearing of face covers and gloves 
  • Checking the temperature of everyone 

Regarding the people who are firmly at-risk such as the older adults or the people with the weak immune system, virtual tours and online market has proved to be effective. As the agents are responsible for following the safety guidelines, they can offer the ideal assistance to purchasers and merchants. There is no explanation behind the momentum that we’ve found in a past few months to be crashed. 

Research predicts that functioning prime market in the medium term, ignited by purchasers looking for homes and networks that offer space and safe-haven.  Therefore, establishing a fully in-action housing sector, that allows people to move freely, maintain a balance between demand and supply is essential. This can be made possible by sustaining the prices at an affordable and realistic rate.  

%d bloggers like this: