09 Jun Life Under Lockdown and UK Housing Market
With many of us spending a considerable amount of time in our homes of late, it is easy to recognise how important your home and local surroundings are. While there is considerable economic uncertainty, it is natural that many people aren’t keen on moving soon.
However, there has been a notable element of demand for property during the lockdown. In the wake of the Government allowing the housing sector to return to business, there has been a lot of evidence indicating people are keen to move home.
There was a notable increase in demand in the housing market during lockdown
For the housing market in England, there was an increase of 88% in the demand for homes when the market re-opened.
Richard Donnell is the director of research and insight at Zoopla, and he said; “The COVID crisis and 50-day lockdown has created an unexpected one-off boost to housing demand. Millions of UK households have spent a considerable amount of time in their homes over the lockdown period and missed out on hours of commuting. any households are likely to have re-evaluated what they want from their home. This could well explain the scale of the demand returning to the market.”
When asked in a recent survey, 60% of would-be property movers said they would be prepared to continue with their moving plans, but 40% said they would delay their plans to move until there was greater confidence in the housing market.
There has also been a steady increase in the number of house sales agreed since the market re-opened, but there won’t be a significant rise until more time has passed. This is due to the time it takes for deals to be concluded, as opposed to any drop-off in demand or sales.
Rightmove issued the following statistics in the wake of the housing market re-opening:
- A 111% week-on-week rise in new sales listings on the day the housing market re-opened
- The unique enquiries demand from buyers doubled from the Tuesday to the Wednesday when the market re-opened
- Rental demand has risen sharply, with unique enquiries at their highest one-day level since September 2019
There have been industry market experts saying there are reasons to be optimistic regarding the property market, but it imperative that safety remains the leading priority in the housing sector.
Miles Shipside of Rightmove said; “Unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks. With no new seller asking price data it’s too early to comment on price movements, though high demand is needed to support a stable market.”
Will remote working demands impact the housing market?
It is important to realise there will be changes in the market. For now, safety is paramount, with virtual viewings being a priority for many buyers and vendors. Thinking longer-term, will an increase in remote working change what buyers look for in a home?
Miles Shipside of Rightmove said; “High demand could lead to a boost in values for properties that offer inspiring home-working options. But on the other hand, the extra value for a property being close to a popular commuter route may diminish if working from home becomes the new norm. We already saw some early signs of people enquiring more about out-of-city areas so it will be interesting to see if this leads to a change in where people choose to buy now the market has been unlocked.”
If you are looking for help with any matter of the Darlington property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01325 776424.