The UK housing market is technically open for business now that coronavirus restrictions are being lifted. This is not to say, however, that we’re seeing anything like a speedy recovery or bounce back, as was the case with the General Election.
Amid changes to mortgage lending criteria, falling house prices, concerns about unemployment, and a reduction, albeit small, in the number of properties for sale, it is estimated that two-fifths of those who were planning to move aren’t planning to do so anymore this year.
This nervous climate is likely to continue having a knock-on effect for months to come, with people put off not so much by any real housing market crash as by the possibility of one happening a few months down the line. Russell Galley, Managing Director of Halifax, said:
‘Looking ahead, we expect market activity to increase progressively as restrictions are eased further across the whole of the UK and we continue to have confidence in the underlying health of the housing market over the long-term.
‘However, the extent of downward pressure on market confidence and prices over the coming months will depend on how quickly the economy is able to recover from the effects of the pandemic and the available government policy support for jobs and households.’
There may be more to the way that the housing market will be affected beyond the simple downward/upward vertical. Coronavirus is likely to have shifted house values in qualitative ways, too. Speaking to the Property Reporter, Nicky Stevenson of Fine & Country pointed out that the home working trend is likely to shift ‘consumer behaviour’ where it comes to housing: ‘working from home may become more common, shifting the relative importance of commute times, broadband speeds and home offices.’
In other words, if you live in an area with super fast broadband, it’s more likely to boost the value of your home than the local train station. Extra bedrooms are also likely to be in even more demand than before, because they will be chased by professionals working from home as well as families.
If you were planning to move but are now hesitant, it’s worth taking these shifting housing trends into account – you may have more leverage in order to move up the housing ladder than you thought. And, of course, it’s worth investigating your mortgage options for your new home – we’ve teamed up with online mortgage specialist Habito; use their free comparison tool below.
source:RealHomes
