Three UK property trends after Covid-19

In just four months, the coronavirus pandemic has changed the UK immeasurably.

Pubs boarded up for months. Face masks compulsory on public transport and in all shops from 24^th July. A thorough knowledge of video conferencing obligatory for anyone who usually works in an office.

But what about property?

While the mortgage market is in flux [to read more on the effects Covid has had on remortgaging click here for our previous article: https://ccameron.co.uk/hub-post/remortgaging-during-the-covid-19-crisis-is-it-worth-it/], people are still searching for new houses and flats online. Though what we’re looking for is changing, with the focus shifting from super-central locations to more affordable areas where you get more for your money.

Want to know where this is all heading? Here are the trends to look out for.

A home for working-from-home

According to a survey of 700 registered buyers and sellers by estate agent, Savills, around half see themselves working from home more in the future. A result of this is that properties with extra rooms are likely to be at a premium. This may mean that buyers in cities may be willing to sacrifice a central location for a larger property further out. A survey by the  Royal Institution of Chartered Surveyors backs this up. Seventy-eight per cent of its members believe that high-rise apartments will lose their appeal in the post-Covid-19 market, while 58 per cent think property in ultra-urban locations will fall out of favor.

Outside space is king

If a second room for video conferencing is a deal-breaker, then properties with outdoor space are also becoming more sought-after. It’s easy to see why. With more time spent at home, the need for fresh air increases, as a poll by the property website Rightmove shows. The results of its survey in May show that searches for houses with gardens had risen by 42 per cent compared to the same time last year. As you might expect, access to public parks and other public spaces will also become more important for buyers when choosing a new property.

Living in the connected countryside

For the past 30 years, London has been a magnet for the young and ambitious. However, with the average price of a first-time property at £446,815, youthful buyers are looking outside of the capital for alternatives. Perhaps unsurprisingly, it’s not just about affordability. After months of homeworking, both companies and workers have realised that you don’t have to come into the office every day. For businesses, this means renting smaller offices. For workers, it means the freedom to live in well-connected market towns and rural locations where they can commute a couple of days a week. Savills says that registrations have gone up for areas like Winchester in Hampshire and Newbury in Berkshire since lockdown began. In its survey, four in ten people said they found the idea of living in countryside more appealing than previously; a number that increased if the respondents had school-age children.

Stamp duty changes

Home buyers were raising a glass to the Chancellor when he announced a temporary change to the stamp duty threshold on 8^th July. With immediate effect, any house purchase up to £500k is now stamp duty free until the end of March 2021. This is a considerable saving and with nine out of ten property purchases now paying no stamp duty (according to the Chancellor), it should help stimulate the housing market which had slowed considerably when the lockdown was first introduced [read more on this here: https://ccameron.co.uk/hub-post/how-the-housing-market-is-currently-operating/].

Whether you’re looking to leave the city or just fancy a little extra space, the advisers at Charles Cameron & Associates will be able to guide you through the mortgage process and take care of the application for you. Get in touch with one of our advisors [link to enquiry form] to see how we can help you.