Is Covid over?

12th August 2021

By Will Leyland

We aren’t, it goes without saying, epidemiologists or virologists, so anything we say here is purely an analysis of the available data and commentary. Looking back just 18 months, the pandemic was starting to become a vivid reality for those of us in the UK as cases started to increase and the first hospitalisations began to be registered, just weeks before the first national lockdown was announced.

An order to stay at home, close schools and businesses, and stay away from friends and family was put in place and the police were enrolled to enforce these new laws that were an unprecedented curtailment of personal freedoms to protect public health.

The ‘clap for carers’ started and went on for weeks to show our gratitude and debt to the NHS, before some sort of normality returned last summer – only to be plunged back into further lockdowns in the winter.

As we’re now approaching a month since the final restrictions were lifted in July, are we now approaching the end game?

We should split this into two parts – the spread of the virus and the economic recovery – and take a look into what this all means for property.

In terms of the virus itself, we can now confidently say that we appear to have moved past the peak following the lifting of all restrictions. Cases have now been falling consistently for weeks, and hospitalisations (a lagging indicator) are now following that trend. Thankfully, deaths are still comparatively low compared with similar stages of previous waves.

The economy, hard hit last year and over winter, appears to be roaring back to life with a vengeance, with growth among UK service companies (the largest part of the economy), scoring a strong 59.6 in July in the IHS Markit/CIPS UK Services PMI report, which surveys business leaders around the country.

Although there appears to be some slowing of earlier momentum, growth is still strong and sustained, and 2021 will likely finish as one of the strongest for GDP growth for decades.

UK property continues to have a very strong and impressive year, with recent figures from Nationwide indicating a 10% rise in prices year-on-year across the UK, with North West England growing a huge 15% from May 2020 to May of this year.

For landlords, they have also seen a huge rise in demand for rental property, certainly apartments and city centre properties, with a drive for renters to return to city centres.

This has ensured that yields have stayed strong in line with rental growth and capital appreciation, however, there are now more property investors than ever trying to acquire an increasingly short supply of property stock, promoting something of a rush for investment opportunities.

Are we seeing the end of Covid? We can certainly point towards the number of vaccinated Brits, and case numbers as evidence that the pandemic is becoming increasingly under control, and from an economic standpoint it would certainly seem as though people are ready to return to normal.

For property? It’s experienced a huge 18 months regardless, and will likely have another good year in 2022, however, if you want to ensure you’re part of it you’d be well advised to act sooner rather than later.

Looking to invest in buy to let? Click here to see what we have available!

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Is Covid over?

12 August 2021

We aren’t, it goes without saying, epidemiologists or virologists, so anything we say here is purely an analysis of the available data and commentary. Looking back just 18 months, the pandemic was starting to become a vivid reality for those of us in the UK as cases started to increase and the first hospitalisations began to be registered, just weeks before the first national lockdown was announced.

An order to stay at home, close schools and businesses, and stay away from friends and family was put in place and the police were enrolled to enforce these new laws that were an unprecedented curtailment of personal freedoms to protect public health.

The ‘clap for carers’ started and went on for weeks to show our gratitude and debt to the NHS, before some sort of normality returned last summer – only to be plunged back into further lockdowns in the winter.

As we’re now approaching a month since the final restrictions were lifted in July, are we now approaching the end game?

We should split this into two parts – the spread of the virus and the economic recovery – and take a look into what this all means for property.

In terms of the virus itself, we can now confidently say that we appear to have moved past the peak following the lifting of all restrictions. Cases have now been falling consistently for weeks, and hospitalisations (a lagging indicator) are now following that trend. Thankfully, deaths are still comparatively low compared with similar stages of previous waves.

The economy, hard hit last year and over winter, appears to be roaring back to life with a vengeance, with growth among UK service companies (the largest part of the economy), scoring a strong 59.6 in July in the IHS Markit/CIPS UK Services PMI report, which surveys business leaders around the country.

Although there appears to be some slowing of earlier momentum, growth is still strong and sustained, and 2021 will likely finish as one of the strongest for GDP growth for decades.

UK property continues to have a very strong and impressive year, with recent figures from Nationwide indicating a 10% rise in prices year-on-year across the UK, with North West England growing a huge 15% from May 2020 to May of this year.

For landlords, they have also seen a huge rise in demand for rental property, certainly apartments and city centre properties, with a drive for renters to return to city centres.

This has ensured that yields have stayed strong in line with rental growth and capital appreciation, however, there are now more property investors than ever trying to acquire an increasingly short supply of property stock, promoting something of a rush for investment opportunities.

Are we seeing the end of Covid? We can certainly point towards the number of vaccinated Brits, and case numbers as evidence that the pandemic is becoming increasingly under control, and from an economic standpoint it would certainly seem as though people are ready to return to normal.

For property? It’s experienced a huge 18 months regardless, and will likely have another good year in 2022, however, if you want to ensure you’re part of it you’d be well advised to act sooner rather than later.

Looking to invest in buy to let? Click here to see what we have available!

Will Leyland

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