After a booming return to business this summer, the UK housing market faces further challenges as increased restrictions are put in place across the country in anticipation of the COVID-19 pandemic’s increased spread during the winter months.
June and July saw a positive uptick in the number of homes sold as estate agents went back to work, and buyers’ priorities changed after an elongated period of lockdown. The demand for three and four bedroomed homes began to rise as many relocated from the cities to areas with more outdoor space, while first-time buyers continued to struggle to get a foot on the housing ladder.
The onset of October brought with it the announcement of the Government’s new tier ranking system for England – a system designed to limit the spread of COVID-19 by bringing into place stricter restrictions on areas with higher numbers of cases, while allowing areas with lower numbers to still enjoy a degree of freedom. This has had direct implications on the businesses located within these different tier systems, with many in tier two and three being ordered to close and work from home where possible.
One such industry that is likely to be hit particularly hard by these new restrictions is the housing industry, and in particular, estate agents. Without being able to show prospective buyers around properties, we may see the housing market begin to suffer once again as the end of the year approaches – and if these tier systems remain in place for the long term, this is something we could continue to see fluctuate throughout 2021 too.
Inevitably, this will have a negative impact on every facet of the housing market from first-time buyers to downsizers, to investors and renters. As always we will continue to keep you abreast on the latest news and what this also means for the strategic land market via this Insights blog so keep checking back for more articles.
This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.
In all cases, readers should conduct their own investigation and analysis of the data in the article. Readers are strongly encouraged to seek independent legal and financial advice when considering an investment in strategic land. All statements of opinion and/or belief contained in this article and all views expressed and all projections, forecasts or statements relating to expectations regarding future events represent Intro Crowd’s own assessment and interpretation of information available as at the date of this article.
No responsibility or liability is accepted by Intro Crowd for reliance on the contents of this article.