David Waddington, Land and New Homes Director for Linley and Simpson, writes for The Stray Ferret and says lockdown has had a surprising effect on the market:
Who would have guessed? Never have estate agents and property advisers had it so good since the Brexit referendum in June, 2016.
An unlikely phenomenon you would think, with only a small proportion of the folk returning to work following the COVID-19 outbreak. A number of sources are reporting enquiry levels at a new high with multiple offers against individual properties, sales on homes that have been marketed for a number years, and new developments receiving unprecedented requests to view.
So, when all we hear about is economic Armageddon, what’s going on?
I think the pent up demand is fuelled by a couple of factors:
Firstly, being cooped up in one’s home for 8 weeks is a sure way to test any relationship, an opportunity to buy bigger, downsize, or at least a change of environment to preserve sanity.
Secondly, whilst many have struggled financially, others have remarkably saved money and with the cost of borrowing being so low, the time seems right for aspiring buyers.
Economically the country is faced with a number of challenges, how do they pay for the furloughing of over 6 Million people? This is heightened by a surge in borrowing in the UK by £62.5bn in April, but putting this into context, the war debt was only concluded within the last ten years, so what’s the rush to pay it back? Income tax however is likely to increase, but whilst we are all so indebted to the NHS, the metaphorical pill should be easy to swallow.
Worrying times we know, but such headline grabbing snap-shots need to be balanced against low inflation and still very cheap mortgage borrowing, assuming that your loan to value is on the right side of 75%.
Estate agents though are having to calm the storm by ensuring that social distancing requirements are observed.
Within the new homes sector, open days with hoards of people are now a thing of the past but properly managed, social distancing arrangements can be arranged for buyers. A recent campaign for a new apartment scheme in Harrogate has resulted in twenty back to back appointments over a two day period, giving each party a private dedicated slot of half an hour to inspect without the need for a shiny suited estate agent asking irrelevant questions. Following each viewing, the property is cleansed, with door handled wiped within a 15 minute window, to allow for the next party to view.
One social distance advantage though….the removal of the luke warm Prosecco and vol-au-vents.
Here in the Harrogate region, we have a strong sense of belonging to the finest area of God’s creation. It has inspired many to look to a new home, to enhance their home life, whilst being comforted by the familiarity of an area that is already enjoyed.
