The Worldwide impact of Covid-19 has taken a toll upon all of our lives and wreaked havoc across the economy with the travel, hospitality and leisure industries being particularly impacted. Yet how has the real estate market been affected?
Historically “An Englishman’s home is his castle” and we are led to believe owning a house, unlike many of our European counterparts who look to rent, is the best way forward. Generation X have made plenty of the opportunities provided by the property market and have often treated the property market as an opportunity to make profit rather than somewhere to live.
However, with many of the middle classes and office workers being told, with Government intervention, to work from home we see a new interesting dynamic. Lots of companies will look to retain a balance of agile working with flexible and remote working with perhaps more focus on the 4-day week.
The consequent result is that in 2020 home has become the place where you spend most of your time bringing homelife and worklife closer together than ever before.
Consequently, businesses will look to downsize office space with less desk space per had required and perhaps look to more of an overall experience to maintain happy workers as we move to a more fluid way of working. Remote working will become a permanent feature of our lives but for all the Zoom and Microsoft teams meetings I still feel you can’t replicate that face to face meeting, a handshake and particularly when you’re starting at a new company that opportunity to learn from your colleagues and peers around you, that critical social interaction.
As the https://www.mortgagecalculator.uk/ refers too, Boris Johnson announced back in October a new 5% mortgage deposit program for first time owners. This stamp duty holiday led to a significant rise in mortgage approvals from pre-Covid levels
The UK government had already announced a stamp duty holiday in July which led to home prices rising 3.7%. This stamp duty holiday lasts until 31st March’21 and means that nine out of ten people getting on or moving up the property ladder will pay no stamp duty tax at all.
Indeed, as a recent BBC article showed house prices in the South West have risen fastest in the UK fuelled by a Covid related rethink by many homeowners with detached houses seeing the biggest annual prices rises and pent up demand during the first national lockdown among those looking to relocate.
Along the same lines https://www.theguardian.com/business/2020/nov/06/uk-house-prices-jump-as-average-home-tops-250000-for-first-time-covid reports UK house prices rose at the fastest annual rate in more than four years in October although it then goes on to say that the market would begin to slow because of the revised lockdown measures and a weaker economic backdrop.
An interesting development has been to see the financial resilience of build to rent with its’ consequent social benefit to residents who feel safe and protected in managed buildings and the community feel that it generates. With loneliness and depression on the rise as a result of Covid lockdowns and isolation periods don’t underestimate the impact of this.
The real need for wellness, connectivity and interaction are direct results of Covid’19 consequently providing different opportunities for those in a position to respond.
For example we’ve seen the latest Apache and MODA Angel Gardens in Manchester arrive purpose-designed and built, multifamily offerings emulating the US.
Despite the natural concerns over hygiene in current times are we looking at a period where co-living becomes more normal? The Collective has the UK’S first co-living building and the community feel, huge levels of social interaction perhaps outweigh the cost and established old school views on the way we live.
The Vonder is bring a new scheme to Shoreditch with 62 newly refurbished apartments with access to exclusive communal areas including a rooftop terrace, cinema, gym and co-working gym with the addition of a wide range of “connection” opportunities through regular events
Likewise, opportunistic purchasers will look to take advantage of the period of inevitably reduced liquidity.
No matter what your requirements are we have all had to look carefully at our finances. With that in mind I had stumbled across the https://www.mortgagecalculator.uk/ which offers a great tool – simply put the mortgage amount you’re looking at, the interest rate and the length of the mortgage term and hit calculate.
You’ll be given the full monthly payment and the interest only equivalent and the total interest payable across the period with graphical illustrations together with yearly and monthly capital and interest payment breakdown.
With positive vaccine news no doubt we’ll see plenty more changes in the real estate World as a result of Covid-19.