The future of the housing market has always been very predictable, with the property market steadily gathering strong momentum each year that passes. However, following the COVID-19 pandemic and the UK lockdown, the UK housing market has been less than predictable, with experts unsure of the impacts the pandemic may have on the future.
In saying that, the UK property market has received a ‘mini-boom’ since reopening after the lockdown, with some expecting a fall in sales later this year with some people still financially recovering from redundancies or furloughed leave. With the property market slowly beginning to regain momentum, it’s the perfect opportunity for London landlords to boost their property portfolio with cost-effective investment strategies.
Whilst it’s still too early to see the long-term impact on the UK housing market and what the future is like, we are likely to see house prices and rental costs fluctuating significantly over the next few months.
The property market is now up and running following a ‘post-lockdown boom’ now pushing house sales to a record high, with buyer enquiries up by an ‘incredible’ 75% compared to last year, which was announced by Rightmove in June 2020.
While many expected a total collapse of the housing market, we have since seen a hard reset over the previous months whereby house prices have dropped in value with a lesser demand for relocating during the UK lockdown. Inevitably, this has resulted in many buyers scouring the housing market with caution and curiosity.
With the sale of properties beginning to reopen in June 2020, we have since seen the housing market slowly getting back on its feet and coming back to life, with property prices slowly escalating back up to pre-lockdown values.
With the UK government temporarily cutting stamp duty, buyers could be saving thousands in tax if they decide to move home before April 2021. This purpose of this cut is to reignite the housing market following the wake of the pandemic, which has pushed some buyers to move house sooner than they had originally planned in a rush to avoid these additional stamp duty fees.
Property website Rightmove announced earlier this year a reduction in properties for sale on their online platform, with 175,000 fewer ‘sellers’ between the months of March and May. However, the property market is looking up with excellent news that Rightmove recorded their 10 busiest days (in history) this May and June, with many potential buyers looking to snap up a Spring deal as soon as they were able to. This prompted a rise in the number of homes coming onto the market.
We expect to see the housing market reach its full potential in the coming months. However, with the recent announcement of the UK announcing a nationwide recession, now is the best time to invest, particularly for first-time buyers and property investors, with property prices set to jump back up in value in the coming years.
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