Coming To Terms With Coronavirus

News at Household | 19/03/2020

If you were looking for an indicator of how fast things move and change in the property market, you only have to look at the start of 2020. As 2019 came to a close, the convincing margin of victory for the Conservative Party persuaded many people that there would be political stability which would aid the housing market.

There was talk of a “Boris Bounce”, and there was sufficient evidence to suggest that 2020 was set to be a positive year in the housing market. Industry observers noted the March Budget and Brexit would likely shape the housing market, but there was genuine positivity about the year being one of action in the housing market.

There was a release of pent-up demand in the housing market

Much of the optimism in the housing market at the start of 2020 has been attributed to the release of pent-up demand for housing. Hopefully, this demand is only placed on hold, and will still be present when we all have a clearer idea of how things will progress.

The NAEA Propertymark figures for January 2020 indicated an increase of 22% for house-hunters registering with member branches. We experienced an increase in buyers looking for property, and many agents we associate with shared the same anecdotal experience.

Leading industry professionals were positive for 2020

At the time, Mark Hayward the Chief Executive of NAEA Propertymark said; “It’s positive to see the New Year has brought some much-needed confidence to the market, with a significant increase in demand from house hunters following the General Election result.”

There was also backing from Royal Institution of Chartered Surveyors (RICS), who were predicting an increase in sales across the UK in 2020 and 2021.

Simon Rubinsohn, the RICS chief economist, said: “The latest survey results point to a continued improvement in market sentiment over the month, building on a noticeable pick-up in the immediate aftermath of the General Election.”

Uncertainty causes issues in the housing market

One of the biggest challenges for the housing market is uncertainty, and these are uncertain times. While it would be unwise to make predictions regarding the market, we will be on hand to offer support and guidance as best we can.

The Chancellor has also issued measures to support people and businesses, including the option for people to take a three-month mortgage break. Paresh Raja is the CEO of Market Financial Solutions and he spoke about the mortgage break. He said; “This is welcome news and builds on the bold commitments made by the Chancellor in last week’s budget. Mortgage holders struggling to stay on top of their repayments will now have a three-month window to reassess their finances. This announcement could also not come soon enough – the COVID-19 pandemic is posing significant challenges for consumers, investors and businesses alike, with the situation changing every day.

With information updating and evolving all the time, we will do our best to provide you with news and support as and when we can.

When you are looking for specialist support in selling or letting, select an agent who has expertise and experience. If you would like to obtain a property valuation from Household, please contact us, and we will be happy to arrange this for you.