What will the property market look like when the Lockdown ends? This question is going to be in a lot of peoples thoughts.
Wondering what to expect in the property world when the lockdown is fully lifted? You’re not alone.
I think most people are unclear on how this will roll out. All we can do is use our expertise to try and understand what this crisis could mean for the housing market.
Let’s take a closer look at what the property market may look like post-lockdown.
And what it could mean for those of you interested in buying or selling:
All suspended sales can now be completed
Reopening the property market as a priority means that most of the sales that were suspended due to the original lockdown have now completed. If you committed to buying or selling your property before this second lockdown your agent will now reach out to you to proceed with the completion of the sale.
Property demand is likely to rise
Based on early indicators, activity levels in the housing market are likely to continue to rise, due to demand that has built up during the lockdown periods. In fact, demand rose by 35% just one day after the government announced that the market was reopening.
Consumer confidence may be low
Although demand for housing is on the rise, it’s important to be aware that consumer confidence may understandably be low at this economically uncertain time. Some people may be keen to stay put and will not interested in making big financial investments until things stabilise.
On the other hand, another potential consequence of the uncertain economic state could be a boost in demand. As people face financial insecurity, they may start to reconsider their housing needs and consider downsizing. Or they may no longer have to commute to work as frequently, with many companies choosing to extend their work-from-home policies well past the lockdown. This could lead to a rise in property demand beyond the most popular commuter zones outside the city.
Economic instability is likely to lead to house prices falling
As we’re set to move into a phase of recession, many forecasters are predicting that house prices may fall by around 10% across the country next year. These forecasts are based on how house prices have fluctuated based on economic conditions in the past.
However, it’s important to note that UK property prices weren’t rising particularly fast pre-COVID. It may also be possible that the government will continue to provide more economic support that is geared towards the housing market.
Following safety measures is key
Although the government has officially reopened the housing market things won’t be exactly the same as they were pre-lockdown.
Virtual tours of properties will become increasingly common. Those who would prefer real-life viewings may need to sign health declarations before doing so.
Although navigating the post-lockdown property market may feel a little more complicated at first, we can guide you through the necessary steps in line with government guidance.
Sellers will need to take extra care to prepare homes for viewings
Sellers can prepare their home for post lockdown viewings with a good deep clean.
Clean all surfaces and door handles with a good antibacterial cleaning product between each viewing.
It will take time for the property market to rebuild momentum
So, what happens next? Although the housing market is open, realistically, it is going to take time for it to fully settle. Many workplaces are still closed, with millions still on furlough. It will be a slow and steady re opening that will ensue but it is necessary for everyone safety.
Want to learn more about how the UK property market will affect your transaction after lockdown?