Housing Sector after the lockdown?
No one can predict what will happen to the housing sector after the lockdown. The house prices will rise or not after the lockdown? Since March 27, when the government announced to pause property deals, many buyers and sellers have been left stranded.
Mortgage lenders have withdrawn products from the market. The listing, valuing and viewing of non-vacant homes has become impossible due to social-distancing measures.
Is it hard to predict housing sector prices after the lockdown?
In recent weeks, the FT has spoken to buyers and sellers who are unable to continue with their property purchase. According to the property portal Zoopla, there are some 373,000 transactions currently on hold in the UK, with a combined value of £82bn.
Different data sources can present monthly house price reports. Land Registry and Rightmove are the best tools for this offering an overview of thousands of homes for sale.
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However, with the market on hold for the foreseeable future, these indices will take months to offer enough data again, as Rightmove’s Miles Shipside pointed out in a webinar led by the property portal.
The housing market commentator said it’s particularly difficult to predict whether house prices will fall or not. Because the nature of the current crisis is different from previous downturns we’ve seen. It’s the first time in history that global health is affecting the economy rather than economic circumstances.
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Will there be an upward price pressure after the lockdown?
He further said: “I think as we leave lockdown we’ll see a relatively benign flat period. I can’t see the forces that would usually drive house prices down at work at the moment but I do think there’ll be a slow-motion period where people get used to the new social distancing rules, and where housing might not be at the top of everyone’s list.
“I think this might last for several months but my gut feeling is that, after that, we’ll see a continuation of upwards price pressure once people get used to social distancing.”
Now, as the government prepares to ease lockdown restrictions, we expect the property market to start functioning again.
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