Housing Market Predictions In A Post-COVID UK
The housing market, along with many other industry sectors, has been hit devastatingly hard during the course of the COVID-19 crisis. It goes without saying that the issuing of national lockdowns has had – and will continue to have – a detrimental impact on the housing market going forward. Despite the challenges faced across all markets, the UK housing market has somewhat, and surprisingly, maintained some stability throughout the duration of the pandemic. However, fluctuating prices and economic downturns have inevitably affected the market in numerous ways, influencing the future of the way in which property sales operate. As the property sector continues its long journey to recovery, buying a home has never been so crucial in efforts to revitalize the housing market for 2022.
If you are looking to buy a home or sell your property, but feel overwhelmed and unsure about current housing market conditions, we are here to help. Our detailed analysis will provide insight into expert predictions of what a post-COVID housing market may look like and how new measures may impact you. For any additional information on how you can buy, let or sell today, our professional estate agents are always happy to advise.
UK Housing Market – What Is The Current Situation?
Adapting to living, buying, selling and maintaining normality throughout this pandemic has been challenging for all. March 2020 saw the beginning of dramatic changes for all businesses, lifestyles and markets worldwide. But how exactly has the housing market been impacted and what shape is the market currently in? The property market has seen, in general, an increasing demand for homes, prompted primarily by the Government’s initiative to temporarily cut stamp duty in an attempt to aid the market. Since the start of the first lockdown, average house prices have risen by 13% due to the everlasting struggle for homeowners everywhere. As of June 2021, the average property price stands at around £265,826, which is largely expected to continue to rise as we come out of national restrictions. At the moment, analysts have established that the large demand for housing is coming from buyers rushing to secure housing prior to the ending of the stamp duty holiday.
The lockdown restrictions imposed nationwide have also impacted lifestyles in a way that has adjusted the actions of UK homeowners and buyers. The ‘stay at home’ motto, extensive lay-offs and the furlough scheme undoubtedly encouraged many to put their time and money into buying a new home. As people remained home and out of work, the need to redecorate or completely relocate was a desire felt by many in an effort to diminish the doom and gloom. As a result, this contributed to the high demand for housing over the lockdown periods. On the contrary, job losses and redundancies had an adverse effect on homeowners and homebuyers, as the loss of assets and financial savings caused many to withdraw from home moving plans. These two common scenarios contributed to the fluctuation in both prices and housing demand.
Our Post-COVID Housing Market Prediction
The financial crisis caused by COVID-19 has severely damaged the economy and general income of UK homeowners, making mortgage payments and housing costs increasingly more difficult for many people to pay. With the financial state of both industry and unemployment rates dropping, how might the housing market transform for 2022 and beyond?
House Prices To Fluctuate
Fluctuation of house prices, as touched on early, are unfortunately inevitable in the current situation. There is much speculation as to what the future holds for the housing market; however, the inconsistency displayed in pricing throughout the pandemic makes it difficult to truly predict the future. The stamp duty relief has been the cause of many influxes in house costs, particularly in attractive areas where demand for housing remains high. The initiative has caused a knock-on-effect, as house listings became higher as the housing market popularised. Before the initiative was put in place, first-time buyers inhabiting a property over £300,000 and regular homeowners buying a property over £125,000 were obliged to pay stamp duty. As you can imagine, cutting this obligation was a relief for many and massively encouraged buyers to secure homes during the stamp duty holiday. However, once the requirement is reinstated in October 2021, we expect a dramatic fall in housing prices to match the restoration of the stamp duty costs. Furthermore, the high demand for housing will continue to affect the supply of properties. The lack of current vacant housing means that each property sale is valuable, allowing homeowners to increase prices to meet the exceptional demand. It is hopeful that the seller’s market will continue to grow, enabling property availability to expand year upon year.
Rural Properties To Popularise
The lockdown effect saw the nation in desperate need of a holiday and an escape from the home they felt trapped in. The need to find peace and break away from normality was passionately experienced by the nation, encouraging the population to take advantage of the scenic views the UK has to offer. Many homeowners and families took the opportunity during lockdown to buy a second home in the country. As the UK restrictions instructed residents to stay indoors, it became more desirable than ever to live in a home with a garden or large outdoor space – thus inspiring people to move to a more spacious and beautiful location. The attraction to the countryside and the notion of ‘making new starts’ have been an infectious trend for families all over the UK, as many people took lockdown as a chance to reflect on their lives. The demand for country homes continues to rise, as homeowners opt to stay clear of cities and allow their families to flourish in the stunning countryside.
Working From Home And Virtual Lifestyles To Continue
The multiple lockdowns triggered by the coronavirus pandemic have revolutionised the concept of working from home. With businesses and workers adapting to virtual team meetings and online work platforms, home offices have never been so popular, with people working hard to create a peaceful work atmosphere in their own property. It has been assessed that the WFH initiative has been a huge success in many businesses, with surveys suggesting that productivity has in fact been higher than ever. This pandemic experiment has undoubtedly become beneficial for many industries, with a large percentage opting to stay in their home offices. As a result, we believe these new, digitised lifestyles in both workplaces and home will have a knock-on impact on how we buy and sell properties. With numerous apps and programmes available online, estate agent meetings and virtual tours will proceed to take place over the net.
Will It Be A Buyer’s Market In 2022?
The sale of homes during the pandemic should drive the revival of the housing market, with new properties expected to sell out instantaneously. The rental market has also seen exceptional growth, with more people opting to rent properties due to the fear of committing to mortgages under the current unknown circumstances. Despite the uncertainty of how the pandemic will play out and whether any more lockdowns could be imposed, property experts remain positive. We expect an incredible resurgence of economic growth, as the nation works together to keep all markets, industries and businesses alive. With this in mind, we are determined to keep the housing market afloat, with opportunities for buyers and sellers to thrive in the coming years.
How Jordan & Halstead Can Help You To Navigate The Housing Market
During times of uncertainty, it is important to put faith in experts that are committed to providing useful advice. Don’t let the effects of COVID-19 put you off. Here at Jordan & Halstead, our specialism team of estate agents and letting agents have worked throughout the pandemic and have exceptional knowledge of the housing market. Our ability to tackle the scenarios thrown at us in the past two years has put us in an outstanding position to help you with your property dreams. As we move forward in a post-COVID-19 society, we are passionate about re-energizing the housing market and providing excellent services for landlords, buyers, sellers and tenants nationwide. Let the property experts at Jordan & Halstead assist you in achieving your housing goals, as we provide you with an impeccable experience – putting our clients at the heart of our business.
Contact Us For Guidance Today
Our reputable business is highly specialised in property sales, lettings, property valuations and property management. We make the process of moving home simple, enjoyable and hassle-free. Our team of experts are dedicated to providing everything you need to buy or sell a home. By putting you and your requirements at the forefront, we can guarantee the delivery of a service that works for you. Our diverse range of services are unmatched, as our business works hard to meet the needs of all clients. Whether you are a first-time buyer looking for mortgage or loan advice, or a landlord needing assistance with letting their property – Jordan & Halstead can help you. For help with your property or guidance with securing your dream home – contact us today.