Even though the UK housing market entered 2020 on an upbeat note, many industry experts advised caution. With Brexit and the March Budget to follow, there were too many uncertainties waiting to impact the market for any observer to be optimistic.
We are now in March, and those who advised caution have been proven right. However, the main issue for the UK housing market, and people in general, is the Coronavirus. This wasn’t an issue flagged up for a concern at the start of 2020, and yet it is now the most essential aspect in life these days.
While you should follow the guidance from experts and officials on how you can personally deal with the Coronavirus, we will consider how the UK housing market contends with the current situation.
What is the current state of the property market?
As of early March 2020, there has been a period of stability, and an increase in buyer activity, in the opening months of the year.
The most recent Halifax monthly house price index, released 9th March, indicates an annual rise in house prices of 2.8 per cent. The month on month increase stands at 0.3 per cent. Data provided by Halifax suggests the average price of property in the UK stands at £240,677. This is an increase on the figures from 12 months ago, which stood at £234,234.
The Bank of England has also offered information to support this positivity, suggesting there has been a 7.1 per cent increase on the year on year figures for mortgage approvals. As an estate agent, we have witnessed a rise in buyer activity, and the start of 2020 has offered cause for optimism.
What impact, if any, will Coronavirus have on the UK housing market?
It is perfectly natural for people to wonder if Coronavirus will affect the housing market. We’ve all witnessed the problems caused by uncertainty in the housing market, and this virus presents another issue which creates risk.
There was a feeling that people had endured enough waiting in the property market and were keen to make a move. It remains to be seen how the Coronavirus is dealt with, and how this may affect property transactions. If people are advised to stay at home under lockdown unless absolutely necessary, it is not unreasonable to expect property viewings to be postponed.
It may not come to this, but examining what has happened in other countries, it would be wrong to not acknowledge this may occur in the UK.
Of course, the property market has evolved considerably in recent times. Video content is an integral component of the industry, and this new challenge may lead to an increase in video tours and walkthroughs. While buyers will still want to view a property in person before making an offer, if vendors and buyers embrace technology, any potential drop-off in the market may be alleviated.
Other aspects of being mindful of, with the Coronavirus is currency fluctuation, and stock market drops. These could affect buyer ability or confidence, which may slow down the market. Again, it may not, but it is worthwhile preparing yourself for all eventualities.
What will happen with viewings and what measures should be introduced?
As this is a serious matter, it is essential to follow proper guidelines. As of now, the focus on everyday issues is acting in a sensible and measured manner. If implicit instructions are issued, these will be followed; but for now, it is vital to apply common sense and display good hygiene at all times.
For viewings, we are more than happy to continue to do these without the vendor or landlord present. In doing so, all our team members are committed to undertake a high standard of hygiene. Our team are encouraged to use antibacterial wipes, which will be used for all viewings, and before we leave the property, we intend to wipe down all surfaces and handles which may have been touched during the appointment.
Our guidelines are to treat our clients’ property as we would our own, and you can be confident we will do everything we can to ensure your property is protected as best as possible.
If any of our clients feel unwell or show signs of suffering from flu-like conditions, we believe it makes sense to postpone any viewing until all parties have recovered. This is likely to be frustrating for all involved, but in the current climate, it is the right thing to do.
Similarly, while we like to greet clients as warmly as possible, in the current climate, a more respectful greeting is likely to be welcomed by all. We aim to inform all clients of our protocol, and we believe most people will appreciate our efforts in maintaining proper hygiene.
The current situation is an ongoing process, and official guidance may change or update at any time. We endeavour to keep you fully informed at all times, and you can be confident we will always act in your best interests.
If you have any questions or queries, please get in touch, and we look forward to assisting you as best we can.
