The Managing Director of one of the UK’s growing development finance companies has expressed optimism in the way the property market is springing back to life.
Sam Howard of Magnet Capital, explains that “There will undoubtedly be far-reaching economic ramifications but at the moment there is plenty of pent up demand.”
This follows a period of COVID-19 lockdown, where approximately £82 billion worth of home purchases were put on hold – and the nation is inevitably going to receive its worse economic downturn in the last decade.
However, “some early indications suggest that the market is springing back into life,” explains Howards.
In fact, Rightmove confirmed 40,000 new sales having been agreed between 13 May and 16 June – and the online property portal saw its ten busiest days ever in May and June.
The lockdown period and ongoing pandemic has started to change perceptions about what people want from their work and home. Unsurprisingly office uptake is at its lowest and more and more people have expressed their desire to continue working remotely.
Rightmove has also seen a surge in people looking to live further away from main cities and town centres, and instead looking to live in areas where they can enjoy larger gardens – potentially raising the value of homes in leafy suburbs or near the countryside but still commutable to the inner city.
The long-term reality of workers might see people consistently working more days from home but going to a smaller, more economic centralised office for 1 or 2 days per week.
“We are all going to be spending more time in our homes and spacious properties with gardens and nice views should be in demand, whereas flats in high rise blocks, requiring lifts and in urban areas with little outdoor space, might struggle,” Howard continued.
“This could be accentuated by people increasingly working from home, with less need to be in urban areas, close to their place of work. The commute will become less of a burden on the psyche and the pocket, if people are working from home a couple of days a week, meaning that more living space, further out of the city centre, becomes much more desirable.”
“All we can do is take each day as it comes, as looking too far into the future of the property market is unwise in the best of times and especially in current times.”