This is a question we have been asked more than any other over the past few weeks and whilst there have been many predictions by the media, we thought we would share with you our thoughts based on FACTS from our sales offices – It may not be as bad as some are fearing!
House prices plummeting by up to 30%! The worst recession seen since the great depression! … We are sure you have read headlines such as these recently and whilst everyone will have an opinion, many of these stories in newspapers and the general media seem to be sensationalist headlines to grab attention and sell copy. Our predictions are based on facts – Things that are happening right now that give us a very good idea about the level of confidence in the UK property market and what may well happen in the coming weeks and months following the end of the lockdown.
Firstly, let’s look at the current activity in our sales offices. Obviously, valuations and viewings are all on hold BUT with the help of modern technology we have been able to carry on valuing property and conducting viewings virtually via video with the use of Whatsapp, Facetime and similar. Our offices have tied up sales and received offers to buy from viewers which is not only good news for many of our sellers, but also indicated that demand is as strong as ever from buyers despite all the current difficulties. High demand equals high confidence in the market and economy and whilst this is the general feeling from most people, then the housing market will continue to thrive.
Mortgage rates are also as low as they have ever been. For those of us old enough to remember the recessions in the late 80’s / early 90’s, interest rates were as high as 16% and this caused huge numbers of repossessions and a dramatic fall in house prices as this shifted supply in favour of demand. Equally in the recession of 2008/2009 demand fell away leaving prices to drop in order to gain interest and secure buyers. With mortgage rates the lowest they have ever been and any rise in interest rates looking highly unlikely, it would appear that demand will carry on out stripping supply long after Covid-19 goes away and things return to some kind of normality.
The Government has put in place unprecedented measures over recent weeks which undoubtedly will have implications on the economy BUT the economy was very strong going into the pandemic and according to the Chancellors latest statement, things are set to bounce back to pretty much how they were back in February / early March relatively quickly.
So, good news in the most part.
Equally, unless you are buying a property and plan to resell within a year, any short term adjustment to the housing market won’t matter. If you look back over the last few decades, whenever house prices have dipped they have always then gone onto increase above and beyond where they were pre drop. This will always be the case. We are an aspirational nation of homeowners, our parents and grandparents have always advised us to invest in property as it is as “safe as houses” This won’t change now.
For the majority of us, a home is more than bricks and mortar, it’s the place where dreams are built, lasting memories formed, life’s big events celebrated and family traditions created. A recent survey in the Daily Mail revealed that the average homeowner spends 21 years living in their home, against this backdrop is there any logical reason why we would press the pause button and stop chasing our dreams?
https://www.dailymail.co.uk/property/article-7205285/British-homeowners-spend-21-years-property.html
If you are currently considering a move and are looking for some FREE, NO OBLIGATION advice why not call us on 01702 394959