The housing market after Covid-19 lockdown
As the nation begins to emerge from lockdown, Jane McGowan looks at how the property industry is adjusting to the new normal...
Back in March, the housing markets of South-West London and Surrey seemed to be entering a new, more hopeful phase.
Gone was the uncertainty over Brexit, a decisive win for the Conservative Party looked set to avoid the recent trend of constant elections, and the country looked to be entering a period of economic stability.
Then Covid-19 hit, and while the human tragedy of the global pandemic is obviously its most devastating legacy, it also left the UK real estate market – worth £1.7 billion to the UK economy – high and dry, as sales stalled, prices tumbled and uncertainty raged.
Some 12 weeks later, the sector is looking once more to growth: home viewings have begun (albeit under virtual or social distancing rules) and cranes once again adorn the skyline as construction workers return to site.
But has the recent lockdown had any bearing on the properties would-be homeowners are looking for?
London lettings and estate agent, Benham & Reeves has analysed current market stock listed online to see which property options were receiving the highest interest from new build homebuyers.
Unsurprisingly, developments which offered a garden or balcony were more popular as property hunters keep an eye on any future lockdown scenarios.
A garden was the most sought after with demand at 13%, while homes with a balcony are currently seeing demand at 11%.
“The new-build market and the fact that these brand new homes are lying uninhabited, offers the chance for many homebuyers to kick on with their search and to progress to a point where they can at least make an offer,” says Marc von Grundherr, director of Benham & Reeves.
“However, the ongoing threat of the Coronavirus means that the traditionally sought after amenities of a gym or pool have dwindled in popularity as people remain aware of social distancing requirements.”
Companies are quickly adapting their offer to appeal to would-be buyers.
For example, Coome Residential, the Wimbledon-based sales, lettings and property management company offers highly sophisticated simulated viewings that give prospective owners or renters the chance to enjoy a 3D virtual walkthrough.
This enables the viewer to experience the layout and dimensions of the house or apartment as if they were actually present, giving a ‘dollhouse’ aspect. Client safety is a priority for Coome Residential, which was an early adopter of the software, with viewers vetted beforehand and password-protected security measures in place.
Meanwhile, developments are underway across the area. For example, Octagon, an award-winning creator of aspirational homes across London and the Home Counties, has a range of properties across Surrey all offering stunning outside space as well as the opportunity to enjoy the many rural walks and pursuits the county offers – something that will no doubt increase their appeal after recent confinement.
And while progress will undoubtedly be led by public mood, the industry is generally hopeful of substantial growth over the coming months.
As Marc von Grundherr says: “It’s clear that buyer demand is alive and well but while the government continues to restrict the estate agency sector from servicing this demand, the market activity will remain subdued.”
