Future of property market post coronavirus lockdown

With coronavirus lockdown restrictions being eased, the property market is gradually returning to life.

The lockdown imposed in March saw a dramatic decrease in demand and activity levels in the property market, with house viewings banned and almost all sales put on hold. However, since April 1 st demand has increased steadily again and has now returned to similar levels to the immediate pre-lockdown phase.

Ludlowthompson’s own findings show that activity levels over the weekend of 16th-17 th May, after the Government allowed house viewings to take place again, were far higher than at any point since March 1 st .The same trends in activity levels were also observed in the rental market.

Research from Zoopla, the property search provider shows that more than 370,000 house sales are likely to have been delayed by coronavirus. However, now that restrictions have been eased it is hoped that more than half of these transactions can now be completed in the coming months.

Despite the uncertainty over the economy, there is hope that house prices will be able to remain at similar levels to the last few years. Following the global financial crash of 2008, the dip in property prices was relatively short-lived, with the market beginning to correct in 2009.

With UK banks having far stronger balance sheets now than they did after the Global Financial Crisis of 2008, there is unlikely to be a squeeze on the number of house buyers looking for mortgages. This is good news for first time buyers in particular and should limit any fall in property market activity substantially.

The pandemic is likely to prompt changes in what purchasers and tenants require from a property. For example, good broadband connections will become an even more important factor in dictating where people choose to live as home working becomes increasingly the norm.

Stephen Ludlow, Chairman at ludlowthompson says: “It is good news to see the property market starting to pick up again in the first phase of the easing of the lockdown.”

“With demand now rising again and supply chains starting to rebuild, this should hopefully stand the market in good stead for the remainder of the year. Buyers should be encouraged that banks are in a much better position to continue lending now than they were post 2008.”

“Although the full economic consequences of the coronavirus are not known, sellers should also take hope from 2008, when more than two thirds of people still managed to sell their home for a higher price than they purchased it for.”

Patrick via Google Reviews:

“I couldn’t recommend Ludlow Thompson enough. We recently sold our property with them and they managed to source two offers which we were really happy with, and they facilitated a quick and easy sale. Thank you so much for all your help!”

Lewis H via Google Reviews:
“Great service when purchasing via Ludlow Thompson. We revisited the property several times at all hours and on weekends and the team accommodated us every time without question. Recommended!”