It wouldn’t be wrong to say that the Coronavirus crisis has impacted almost every space and corner of the world, especially the regions that were the hardest hit. The fear, the uncertainty and the lockdown all together changed the world around us dramatically, and that’s putting it lightly, to be honest.
None of us were prepared for it, and it hit all of us like an incoming truck. Naturally, businesses suffered and both the private and public sector suffered losses. Some, however, fared better compared to others and managed to adapt and find a way to stay afloat- the UK housing market being a good example.
So how has COVID-19 really shaped the real estate market in the UK? Read on to find out.
The Highs and Lows
The initial months that focused on complete lockdown obviously had major ramifications when it comes to the housing market. Property rates hit a major low with many small businesses shutting down and companies operating from home and embracing the remote working lifestyle.
This trend has, not surprisingly, quickly changed as well in the last couple of months as the lockdown restrictions have started easing up and the number of positive cases affected by the Coronavirus has started to decline. In fact, the housing prices in the UK have hit a new record high, hitting the highest monthly price rise for 16 years. All this despite the existing restrictions on movement, the shift into remote working, a deep recession and economic crisis and the uncertainty around the situation in general.
So all of that happened, but what actually gave rise to this behavioural shift? Well, the lockdown situation has brought about a sudden shift in perspective in the minds of potential buyers. People are now focusing more on working from home and there’s an increased need for a quiet space, a bigger garden and more space in general in an attempt to make life at home easier.
That, combined with the stamp duty holiday has made many potential buyers look for bigger homes, where they could convert an extra bedroom into a home office. Coastal and country properties have also increased in demand. Plus, there has also been a rise in the need of accommodation, which has led to the conversion of buildings with office blocks into flats and apartments. If you are one of those looking to move, you may find this mortgage calculator handy.
Will it Last?
So the question arises, will this actually last? Well, with the schools and businesses opening and the changing needs and demands, the UK housing market, just like everything else, will find a way to adapt.
The virus may have come as a shock to the property markets, but it will speed up and come to pace with the changes that are taking place.