Due to the impact of the past three months of lockdown, it is no surprise that estate agents and the property market generally have been affected. During this time, property investors have continued to watch the developments in the market in order to spot potential future trends. There are, however, still many uncertainties remaining regarding the future of the UK property market.
This has been highlighted by Tamas Borodi, director of PropertyMenu, who has explained:
“On one hand, the market is back, and according to Rightmove’s house price index, prices are on the rise. Some other sources, such as Savill’s Residential Property Forecast predict that prices will decline long term. The reports are confusing.”
If you have been following the property market news, you will be well aware of this widespread sense of confusion occurring at the moment.
On the one hand, Rightmove’s sunnier outlook suggests that the market will bounce back despite the current estimate of 175,000 missing sellers. One reason they cite for this is more time being spent at home resulting in rising unhappiness in our surroundings.
People in lockdown have decided they want more space or perhaps a garden so they have started looking to move elsewhere. This resulted in a 40 percent increase in calls and emails through Rightmove on the 8th June compared to early March. Another look at the market found that there was only a 3 percent decrease in sales agreed on the 5th June compared to the same day in 2019. This suggests that the effect on the property market is not as severe as once predicted.
Savills Residential Property Forecast
Savills has taken a different approach by using the economic background to inform their market forecast. It is well known that the economy will be negatively affected by the pandemic and we may be facing a serious depression. Due to unemployment rising following many workers’ furlough or redundancy, there will no doubt be a drop in the number of people being able to move.
Furthermore, Savills explains that any sudden rise in the market when restrictions were lifted cannot be used as a reliable forecast as “transactions will reflect people’s appetite to move, rather than their ability to do so.” This means there may be a brief spike in the market but buyer uncertainty coupled with lender caution could result in this dipping again.
It is clear from just these two predictions that the market is currently very uncertain. This is holding many people back from entering the market despite agents, sellers, and investors being keen to go back to normal. As you will no doubt understand by now, we are a long way from normal and we don’t think the market will be business as usual for a while.
However, we also see investors actively looking for opportunities. Investing in property is a way to use your savings more effectively which is a path many of us are looking to travel in the current economic climate. Regardless of your reasons to invest, it is important to do so with knowledge and confidence.
How to Make the Most Out of the Property Market’s Current Conditions?
If you want to use this turbulent time to invest in property, it is important that you set out your goals long-term due to fluctuations in the market. These fluctuations will have less of an impact on investors if they are thinking long-term.
Once you have set out your goals, it is vital that you do your research. By assessing the market and understanding local demand, you have a better chance of finding success. This allows you to be smart in terms of providing what buyers want. On reflection of the past few months, this could be achieved by employing strategies such as adding a home office area due to the rise in the amount of people working from home. This change to home working is likely to be a long-term change in the world of business and so makes it a clever long-term property investment.
PropertyMenu is here to help you invest transparently through the use of technology. Our online platform matches potential investors to property deals across the UK and strives to give you clarity in every aspect of the deal. This is how we uphold standards of credibility and professionalism that will help you make the best investment.
What Are We Doing to Help Investors In New Ways Post-Pandemic?
Although the past few months have been hard for us all, we have been able to make positive changes to our business that we are really excited to share with you.
- We have heavily invested into our back-office processes to be more efficient in serving our customers.
- We have grown our team and found that this is a great time to find talents on the market.
- We are extending our product & service offering. We offer hands off property investment and management services to investors who want to beat the bank but do not want to get involved in the daily management of their property portfolio. We are aiming to establish a long-term partnership with our investors and want to do right by you in every aspect of your investment.
- We are launching our ‘Preferred Partner Program’ and looking for service providers who are buying into our vision and want to join us to make this industry clearer and more transparent.
It is an uncertain and worrying time but business and life is constantly moving on. We are here to help you make the right steps forward into investing into property and change this difficult year into a great one.
Investing in property at the right time can help you make a higher return and can add more depth to your property portfolio. If you’re looking to invest for the longer term, lower property prices paired with historically low interest rates, a growing population and strong rental demand are contributing to now being a great time to invest in property in the UK.
Are you interested in more insights on investing in property after COVID-19?
Download the free report PropertyMenu has prepared to help investors out.
Download the free report