We’re about to enter our sixth week in lockdown – and many of us are still trying to adjust to spending so much time at home.
Although we’ve been doing our best to keep busy, most of us just want to know when this will be over. (There’s only so much TV one person can watch!)
And once lockdown has been lifted, what kind of normal will we be returning to?
As we’re just estate agents, we can’t answer all the big questions about the future of the UK’s economy and what’s going to happen next.
But, because we’re experienced estate agents, we can tell you what we think will happen to the UK property market.
Whilst we don’t have a crystal ball to consult about the future of the housing market, we do have CEO of Edward Mellor, Colin Mellor, and lots of data.
So without further ado, we’ll let Colin share a few golden nuggets of information with you to help paint a clearer picture of what the property market will look like post-lockdown.
“Having worked in the property market for just under 40 years, I don’t think you’ll be surprised to hear I’ve never experienced anything like the terrible circumstances we have today.
So what experiences am I drawing on to give you any kind of insight into what will happen to the housing market once this terrible period comes to a close?
The single difference between this and all of the property recessions I’ve seen is this is a health crisis.
Yes, it’s currently having a significant impact on the economy but it’s only expected to continue for the period of lockdown.
What we were seeing at the beginning of the year, once Brexit was finally decided, was a large number of buyers returning to the market.
This increase in buyer activity very quickly achieved a healthy relationship between supply and demand again.
In fact, towards the beginning of spring, this state of equilibrium we’d seen at the start of the year was leaning more towards a shortage of supply.
If the demand had continued to grow at the rate we were seeing, it had the potential to push house prices up!
Although the current state of the housing market seems a lifetime away from what it was a month ago, it won’t take long for the market to bounce back.
Despite job fears, there is an anticipation that over 90% of the working population will still be employed.
And if is the case, we’ll see those buyers return to the market post-lock down.
Typically, the housing market is always busier after holiday periods such as Christmas, Easter, and the Summer Holidays.
Like the seasons, these holiday periods usually bring about change and encourage people to look forward to the future.
It’s the time families make decisions, 20-somethings fly the nest, or when couples decide to cement their commitment and move in together – or part ways and move out.
Like those holiday periods, lockdown has given people the opportunity to reflect on what they want from their home moving forward.
In 9 months’ time, you might be looking for more space – we’ve all heard of the anticipated baby boom! Or you might want a house that feels a little less empty now the kids have moved out.
You might be craving a garden, an actual home office (not the kitchen table), or a change of scene. The list is endless!
Ultimately, we’ve never been restricted to our four walls for such a long period of time.
With this in mind, I believe there will be a strong desire for change when this is all over.
It’s quite simple.
With so much pent up demand, we’ll see a sharp rise in people looking to buy and sell their homes.
It might not be straight after the lockdown is lifted, but it will happen.
Although we’re not sure who will return to the market first out of buyers and sellers, market trends do point towards buyers.
Typically, it’s the buyers who arrive first and the sellers follow knowing they’ll have a good chance of finding someone to buy their house.
So if your idea of home has changed over the last month and you’ve been thinking ‘should I wait or should I look now?’ – You need to be looking now.
Waiting could be the difference between being able to move to the area you want or no longer being able to afford it.
Now is the perfect time to explore your options. You’ve got time to look into your mortgage and find out how much you could actually borrow.
With the base rate at an all-time low, your next move could be more affordable than you initially thought!”
At Edward Mellor, we offer FREE mortgage consultation over the phone or via video conference.
You can book a telephone appointment with one of our experienced mortgage experts just to see where and what type of property you could buy now.
If you have already decided you are going to move, start getting the house ready to go on the market.
To view the top jobs you need to do to get your house ready to go on the market as soon as we are out of lockdown, click here.
For more information on putting your property on the market, get in touch with us now.
It’s also a good idea to start researching where you would like to live, schools, public transport, nightlife, parks, and open spaces or whatever is on your priorities list.
If you’d like to discuss your next move with our team, we’re only a phone call away.
Just call your local branch number and one of our property experts will be on hand to help.
Alternatively, you can use our property search tool to start looking for your next dream home.
