Covid-19 has caused economies across the world to grind to a halt, concerning people in many different sectors hugely. It is no different for property. Buyers are hesitating, transactions are slowing and lettings are difficult with lock-down restrictions in place. However, it is also well worth noting and reminding ourselves that the UK economy has slowed only because of measures being taken to contain COVID-19 as much as possible. The situation is temporary, and as with The Great Recession of 2007-2009 – it too will pass.
Savills have published updates confirming that they stand by their original forecasts in November before the Coronavirus situation broke. Their forecasts remain and continue to highlight the highest levels of growth in the North of England. They explain that the 3 fundamental effects on the market are on 1. Sentiment – buyers are cautious in the short term at this time. 2. Practicalities – delays and furlough may slow some transactions. 3. The impact on the economy and any knock on to traditional drivers of affordability.
“The emergency cut in the bank base rate, economic stimulus from government spending pledges and the willingness of mortgage lenders to take a considerate view of short-term mortgage arrears, are designed to mitigate the impact. Meanwhile, the perceived security of a bricks-and-mortar investment in times of uncertainty should help to underpin values.”
Savills point to a temporary glitch through this time of economic suspense but that the long-lasting, and firmly held belief that bricks and mortar stand for stability, means that we will see activity return as it has done before.
If you are a buyer from overseas, advantages in the drop of the pound against the dollar means you could buy now at extremely reduced rates. For UK buyers wanting to capitalise the extra discounts developers are considering, on the buyers pressed for a quick sale – now may be the best time to buy for you.
At TK Property Group we offer clients the best in UK property investment. Our focus is presently on the areas securing the highest growth combined with strong rental yields. See if any of these meet what you would be looking to consider further >>> Buy-to-Let Property Investments.