The initial lockdown (in March 2020) brought the housing market to an abrupt stop. Since then, it’s been operating under various levels of COVID19 restrictions. Now, however, vaccines are being rolled out and a way out of lockdown has been planned. It, therefore, appears that the UK may be reaching a “new normal”. What could this mean for the housing market?
An increase in transactions
Moving home can be stressful at the best of times. Moving home at a time of COVID19 restrictions took the usual challenges to a new level. As those restrictions ease, people may be more inclined to get back into the market.
It’s also possible that the impact of the pandemic will lead people to reassess their housing needs. For example, parents who’ve had to keep children indoors throughout the pandemic might want to make sure that they have convenient access to green spaces.
Likewise, buyers might be more inclined to pay extra for properties with space for home offices and/or gyms. This would help to ensure that they had some level of protection in the event of another pandemic or other critical event.
A new emphasis on photo and video presentations
It might be some time before the majority of houses are bought and sold virtually. In fact, that time may never come. It is, however, very possible that the post-pandemic housing market will continue to make extensive use of virtual presentations.
The simple fact of the matter is that real-world house viewings are a hassle for everyone. Sellers have to get their home ready. Buyers have to travel to the location. Agents have to manage the logistics.
There is hence a clear argument in favour of pushing out more information in the form of photos, videos and possibly even virtual tours (e.g. live-streaming). These can be used to whittle down buyers to people who are seriously interested in the property.
A return to internet cabling
If remote/hybrid working remains mainstream then internet access could become a key differentiator between properties. There may be little individual consumers can do to influence the development of the UK’s broadband infrastructure. By contrast, there could be a lot they could do to influence the quality of the internet within their home.
For example, homeowners might choose to have internet cabling installed so that they would have the choice between wired and wireless internet access.
An escape to the country
On a similar note, if remote/hybrid, working becomes a major part of the new normal, then inner-city housing markets could suffer. By contrast, areas with poorer transport links could benefit, albeit probably only if they had decent internet. After all, if people are spending fewer days in the office, they might be more willing to put up with longer commutes in return for lower prices.
University cities might be an exception to this, at least to some extent. If universities continue to deliver face-to-face teaching and if students want this, then they may continue to generate demand inside cities. Again, however, it’s unclear whether this demand will stay at historic levels.
Courses with a practical element may require, or at least benefit, from real-world teaching facilities. That said, there may be ways to fulfil this need other than having students on site all the time. Courses that are, however, based more on reading may be adapted fairly easily to a remote-learning model. It would then be a question of which students preferred.
On the one hand, students might very much like the idea of being in a city with their peers. On the other hand, this comes at a price. Students will have to decide for themselves whether or not they think this is a price worth paying.
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