According to BBC News, coronavirus will have a major impact on the property market. Of course, considering this pandemic has affected almost every country, every business, every industry and every sector, it is understandable that the property market will take a hit because of Covid-19. Be it estate agents in Eltham or real estate agents in Bristol, no one can affirmatively say what will happen to the price of houses in the UK post Covid-19. However, keeping in mind the highs and lows of the property market, here are the possible impacts of coronavirus on the UK real estate market.
The prices will drop, but they will bounce back
As expected, the price of real estate in the UK is dipping. Online property portals have noticed that the traffic on their website is significantly increasing, so it is safe to say that the interest in real estate has remained high. However, due to wage cuts, unemployment, failing businesses and major losses, buying a new house is the last thing on anyone’s mind. Even if buyers are thinking about investing in property, they are going to be very cautious because of the uncertain times ahead. As of May 2020, the Nationwide House Price Index showed a 1.7 per cent fall in property prices which has been noted as the largest decline in the last 11 years! As the pandemic comes closer to an end, as employment opportunities increase and wage cuts stop, people will start thinking about investing in real estate again. And when that happens, the prices of real estate in the UK will bounce back.
Overseas buyers will help keep the market afloat
As always, overseas buyers have a major interest in buying real estate in the UK. While these buyers are always welcomed with open arms, they will be welcomed even more once the pandemic ends because these overseas buyers will help keep UK’s real estate market afloat! In fact, it is predicted that investment from overseas buyers might be encouraged by certain incentives and government schemes. Of course, foreign investment is a great boost for the economy and the UK government will want nothing more than the betterment of the economy. As foreign investment increases, it is highly likely that the real estate market will start to see a slow but steady increase.
Home improvement will be the number one goal
Be it potential buyers or current homeowners, home improvement will be the number one thing on everyone’s mind. Since working from home has become the new big thing, a lot of people will attempt to create home offices and workspaces in order to be able to work remotely. This will also be a big factor for potential buyers who will prefer to buy a property that has a work from home space. Most people will prefer to renovate their homes, improve their standard of living and add office spaces in their home setup, which is great for builders, developers and contractors. With these improvements and additions, the valuation of the property will rise. As more and more homeowners work towards home improvement, the prices of real estate in hubs and areas will rise, leading to an eventual rise in the value of the UK’s real estate market.
Prime properties will become affordable
There is nothing better than a prime property that actually has value for money. As the prices of real estate in the UK fall, prime properties will become more affordable. Of course, these properties will not be sold for peanuts but they will see a slight decrease in prices which will make potential buyers feel that investing in prime property is good value for money. For the people that can afford these prime properties, the pandemic has paved a way for them to buy these fabulous properties at great prices. Since these investors and high-worth buyers will be keen on buying prime property at discounted prices, it is expected that the prime property sector will see the most activity once the pandemic ends.
Expect a major change in how viewings work
Be it during the pandemic or once the pandemic over, one thing is for sure, Covid-19 has ensured that we change the way we view houses forever. During coronavirus, estate agents have started taking videos of properties to show those to potential buyers. Some estate agents even provide a virtual tour of the property for potential buyers to get a real look and feel of the place. Virtual viewing saves time, allows buyers to view the home as per their convenience and allows flexibility. It is predicted that in the future, virtual viewings will be the go-to way to see potential houses. Once buyers set their sights on a particular property, only then will they make the effort to actually view the place in person. This makes life easier for the buyer, the real estate agent and the seller, making this a win-win situation.
At the end of the day, the UK real estate market will bounce back as it always does. Every property market has its slumps and its highs. If you’re thinking about investing in property in the UK as a long-term investment, especially if it is for personal use, then consider this to be a pretty safe investment. If you’re thinking about a short-term investment in property in the UK, then you might want to do some research or wait till the real estate market stabilizes a little.