The Property Industry Could Look Very Different Following Lockdown

Significant changes will be made to home viewings, whilst buyer attitudes are expected to have been transformed by the pandemic.

With approximately 450,000 property transactions stalled or falling through during lockdown, the economic impact of Covid-19 on the housing market has been phenomenal. Strict social distancing regulations have postponed property exchanges and completions, affected the ability of removal firms to carry out their work, and prevented houses from receiving viewings from potential buyers. With some of these restrictions relaxed somewhat since the housing market reopened for business on May 13th, things look likely to pick up over the coming months. However, there are many changes to the industry that buyers, sellers and professionals should expect following the pandemic.

Social Distancing 

The key to reducing the spread of Covid-19 is to maintain a 2-metre distance from people outside of your household. Additionally, you must stay at home if you or a household member is displaying any signs of having the virus. A firm of conveyancing solicitors in Southend on Sea explains that estate agents will not be allowed to take instructions or show people around homes if they openly have Covid-19 symptoms. The challenge with this is relying on people to be honest about disclosing this information. In any case, virtual home viewings are on the rise, as potential buyers are happy to use technology to gain an initial impression of a home. Open house viewings are not permitted during this time. 

Buyers Need More Space 

If the lockdown has taught us anything, it’s about what we need our homes to do for us. Whether you’re lacking in garden space or need a quieter study area to work in, your home can suddenly feel a lot smaller when you’re sat in it 24/7. 

Moving Further Afield 

Some employees are being told that they won’t be returning back to the office for the remainder of the year at least, whilst others are enjoying the balance of remote working. If it seems as though you’ll be working from home for the foreseeable future, then you might be interested in moving somewhere with more space. Equally, if you’re expecting to spend less time in the office, then this also opens up the possibility of moving further away from city locations or the vicinity of public transport. In research conducted by Savills, 17% of respondents were happy to switch to a longer commute as they weren’t expecting to doing it as regularly. 

Government Assistance 

The property industry has been requesting assistance from the government to boost housing activity. Possible measures include cutting stamp duty temporarily or overhauling the stamp duty system completely to make it less restrictive for buyers. Other suggestions of aid are related to the government’s Help to Buy scheme which could potentially be extended to a wider circle of applicants. There are also calls for the construction industry to receive greater funding to ensure that there is a strong supply of new housing stock for both first time buyers and home movers. 

As the UK starts to come out of lockdown for the first time in months, there is also hope from a perceived pent-up demand for properties. As this will be released as buyers return to the market, hopefully this will alleviate at least some of the financial impact caused by the pandemic.