The COVID-19 pandemic has had a significant impact on the UK property market. With the various restrictions and social distancing measures implemented by the government, the way that people are buying, selling and renting properties has dramatically changed. In this post, we’ll take a closer look at the different trends that have emerged in the property market, from regional house prices to remote working’s impact on property demand, and the rise of virtual viewings. If you’re a young person looking to buy your first home or just curious about the changes in the property market, this is the blog post for you.
Regional House Prices: Since the pandemic began, there’s been a noticeable shift in house price trends across different regions. According to data from property website Rightmove, many people are looking to move out of big cities and into rural and coastal areas. This is mainly because people are looking for more space and a better quality of life outside of urban areas. As a result, house prices in areas such as the South West, East Anglia, and Northern Ireland have increased by six per cent compared to the previous year. The New Homes Ramsay Isle of man are also increasing. In contrast, London’s property market has struggled, and house prices have gone down by two per cent.
Remote Working’s Impact on Property Demand: One of the most significant impacts of the pandemic on the property market is the shift towards remote working. Many companies have adopted a work-from-home policy to keep their employees safe, and this has caused people to re-evaluate their living arrangements. People are now looking for properties that have more space for a home office and are closer to nature. We can expect to see a rise in the demand for properties in locations outside of big cities that will cater to this new norm.
The Rise of Virtual Viewings: To comply with social distancing measures, many estate agents and property sites have started to offer virtual viewings. Virtual viewings allow prospective buyers to view properties from the comfort of their homes, making it easier and safer to purchase without physically seeing the property. Online platforms like Zoopla and Rightmove reported huge spikes in the use of virtual viewings over the past year. Many estate agents predict this trend will stay even after the pandemic ends, as virtual viewings are convenient for both buyers and sellers.
Lending Restrictions: Despite low-interest rates, the pandemic has caused many lenders to take a more cautious approach. They have tightened their lending criteria, which means it’s more challenging for first-time buyers to get onto the property ladder. Lenders are now asking for more significant deposits from borrowers, making it more challenging for first-time buyers to save for a deposit. However, the government has introduced a scheme called the ‘Help to Buy’ Mortgage Guarantee, which aims to help first-time buyers get onto the property ladder with a five per cent deposit.
The UK’s property market has experienced significant changes since the pandemic began, from a shift towards remote working, to virtual viewings and the changing regional house prices. Although the pandemic has caused some uncertainty in the housing market, many people are still keen to invest, and we can expect to see new trends emerging as the economy recovers. However, it’s essential to keep in mind that the property market can be unpredictable, and it’s always worth doing your research before making any significant investments. If you’re looking to purchase a property, it’s advisable to work with a reputable estate agent who can guide you through the process and give you a better understanding of the market’s current situation.