The property market manages to escape lockdown 2.0

6th November 2020

By Anna Bibby

In the hope of saving Christmas 2020, the UK government made the decision to put the country in a nationwide lockdown for a month, starting on the 5th of November.

Addressing the nation in a TV broadcast, Boris Johnson announced the new lockdown and outlined the new restrictions. Like in the previous lockdown, households are banned from mixing and all non-essential businesses will be forced to close, including hospitality venues and retail shops. However, unlike the first lockdown, the property market will be able to continue on as normal for the time-being, which will be a huge relief for all those that are looking to move, invest or sell their property.

In a joint statement, the Home Builders Federation (HBF) and the Ministry of Housing, Communities and Local Government confirmed that the housing market and the supply chains that support it can still continue as normal, but with extra precautions in place. This means that construction sites can continue to operate and viewings, valuations and home moves can go ahead providing that the correct safety measures are in place.

Naturally, this is welcome news for the industry after a surprisingly positive year for the UK property market. Mark Hayward, chief executive of NAEA Propertymark, said: ‘We welcome the news that the housing market is to remain open throughout this second lockdown period, and it is essential that all agents continue to play their part in reducing the spread of the virus through following all relevant guidance.’

The real question is whether the market can continue on its positive trajectory with a second lockdown in place. Once it re-opened back in May, the property market saw a huge surge in demand, despite numerous predictions of an impending property crash. This was largely attributed to cheaper borrowing rates and the stamp duty holiday that was introduced during the summer - these factors created even more interest from potential buyers on top of the already high demand that was already present in the market prior to the pandemic. Although the market picked up after the initial lockdown, the surge in demand caused a huge hindrance for first-time buyers, with rising house prices and lenders clamping down on LTV mortgages, which has forced a lot of people to stay in the Private Rented Sector for longer than they had initially planned.

The introduction of the second lockdown will only make things more difficult for first-time buyers to get on the property ladder, and the next four weeks will put the UK economy in a precarious position so it’s likely that lenders will become even more cautious when it comes to their lending criteria.

There is also no sign of house prices declining any time soon. According to data from Nationwide, house prices increased had seen a year-on-year increase of 5.8% in October. With that in mind, and the fact that the nation is expected to spend even more time at home now, the appetite for UK property will not be going anywhere.

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The property market manages to escape lockdown 2.0

06 November 2020

In the hope of saving Christmas 2020, the UK government made the decision to put the country in a nationwide lockdown for a month, starting on the 5th of November.

Addressing the nation in a TV broadcast, Boris Johnson announced the new lockdown and outlined the new restrictions. Like in the previous lockdown, households are banned from mixing and all non-essential businesses will be forced to close, including hospitality venues and retail shops. However, unlike the first lockdown, the property market will be able to continue on as normal for the time-being, which will be a huge relief for all those that are looking to move, invest or sell their property.

In a joint statement, the Home Builders Federation (HBF) and the Ministry of Housing, Communities and Local Government confirmed that the housing market and the supply chains that support it can still continue as normal, but with extra precautions in place. This means that construction sites can continue to operate and viewings, valuations and home moves can go ahead providing that the correct safety measures are in place.

Naturally, this is welcome news for the industry after a surprisingly positive year for the UK property market. Mark Hayward, chief executive of NAEA Propertymark, said: ‘We welcome the news that the housing market is to remain open throughout this second lockdown period, and it is essential that all agents continue to play their part in reducing the spread of the virus through following all relevant guidance.’

The real question is whether the market can continue on its positive trajectory with a second lockdown in place. Once it re-opened back in May, the property market saw a huge surge in demand, despite numerous predictions of an impending property crash. This was largely attributed to cheaper borrowing rates and the stamp duty holiday that was introduced during the summer - these factors created even more interest from potential buyers on top of the already high demand that was already present in the market prior to the pandemic. Although the market picked up after the initial lockdown, the surge in demand caused a huge hindrance for first-time buyers, with rising house prices and lenders clamping down on LTV mortgages, which has forced a lot of people to stay in the Private Rented Sector for longer than they had initially planned.

The introduction of the second lockdown will only make things more difficult for first-time buyers to get on the property ladder, and the next four weeks will put the UK economy in a precarious position so it’s likely that lenders will become even more cautious when it comes to their lending criteria.

There is also no sign of house prices declining any time soon. According to data from Nationwide, house prices increased had seen a year-on-year increase of 5.8% in October. With that in mind, and the fact that the nation is expected to spend even more time at home now, the appetite for UK property will not be going anywhere.

Are you looking to make your next investment? Take a look at what we have available!

Anna Bibby

Did you find this article helpful?


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