Housing Prices After The Crisis

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What will the housing market look like post COVID-19? Written by Maria Azzurra Volpe 

The novel virus that invaded the world last March, caused disruptions to every single aspect of the society, causing most of the businesses and services in the country to close temporary due to government safety measures, this did not exclude the housing sector.

 The British housing market had started the year 2020 in a strong position, with a property priced increase by 2.1% since last year, but the spread of the virus changed these numbers changed, with the implementation of the lockdown and of all the safety measures with included the temporary closure of the housing market, experts predict that UK housing prices this year could fall from 5 to 10 %.

According to “Rightomove”, one of the biggest Real Estate agencies in the country, their latest research shows that the average price for property in the market in April dropped already by 0.2 percent, to 311,950. 

In the UK the housing market reopened on May 13, this means that people are now allowed to move to a new house, estate agents can reopen, and viewings are permitted again.

Although, real estate operations are unlocked it doesn’t mean they’re as easy and smooth as they used to be before lockdown.People who are self-isolating are advised by the government to continue with their self-isolation measure and postpone moving until the situation is under control, if not strictly necessary.Virtual viewings are they say still recommended, in order to avoid any unnecessary physical contact.

If you are moving, or you are planning to move to a new house any time soon, you should follow the government guidelines, which can be found here:

https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak 

According to research conducted by Knight Frank, one of the biggest estate agents in the country, in the event of a long lockdown the number of home sales will drastically drop down to 566,00 this year from 1,2 million last year.

It’s estimated there will be a 7.9 bn loss in DIY and renovation spends.

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The COVID-19 pandemic will also negatively impact mortgages, in fact, lenders are expected to approve 350,000 fewer mortgages, 150,000 to first time buyers.

Is there any help from the government for young people? 

The government offers different schemes to help citizens, from equity loans to shared ownerships.

You can check what options are available for you, and their qualification requirements here:

https://www.gov.uk/affordable-home-ownership-schemes

 

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