The post-lockdown trends ruling the property market
The property market is gradually recovering. After an interesting few months, clear trends are now emerging that look set to dominate the market for some time.
Pent-up demand speeds up sales
With the property market open once more and buyers galvanised into action by pent-up demand and incentives such as the temporary Stamp Duty holiday, many property transactions are reportedly flying through. According to Zoopla, a three bedroom house sold in an average 24 days in the 90 days to mid-August – 12 days quicker than last year1.
The world reflects
Meanwhile, one-bedroom flats are now taking the longest to sell at 34 days, perhaps reflecting a nationwide prioritisation of what we want and need in our homes. For example, post-lockdown demand for outside space has shot up, with properties with south-facing gardens enjoying a 7% higher price than average2. These trends are borne out globally; a survey of buyers from 44 countries revealed that 40% and 37% are on the lookout for waterfront and rural homes, respectively3.
Homeowners seek country idyll
The mass shift to remote working means that many buyers are no longer tied to London, big cities or expensive commuter areas. As a result, enquiries about village properties leapt by 126% in June and July compared with the same period last year2. With the nation cooped up in their homes for months during lockdown, it’s little wonder that so many have their eye on a piece of rural idyll.
Longer mortgage terms for first-time buyers
Even before the pandemic, some first-time buyers were struggling to get their foot on the ladder. Resigning themselves to longer mortgage terms in exchange for affordability, 45% of first timers accepted a term of 30 years or more in 2018–19.
Advice is key
The property market is in a state of rapid change as the country emerges from lockdown. Over the coming months, local lockdowns are likely to continue to be enforced, which will present other challenges for regional property markets. It’s vital to take professional advice to give your property plans the best chance of success – so get in touch.
1 Zoopla, 2020
2 Rightmove, 2020
3 Knight Frank, 2020
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.