David Waddington, Land and New Homes Director for Linley and Simpson, gives his views on the impact of coronavirus on the Harrogate district property market:

Estate agents are reporting difficult trading conditions as a result of the near lockdown situation, but is our North Yorkshire bubble more insulated than most?

Our local agents are experiencing tough times again, Brexit was a three year turn off for both sellers and buyers culminating in a general election in December 19 followed by the Boris Bounce which lasted for a total of four weeks. This was short lived and when things couldn’t get much worse Coronavirus came hurtling over the hills in early March.

It is clear to see that the property market and associated industries have not had an easy ride for at least three years, but what will be the real outcome be when this current disaster has returned back over the hills?

The positives are that inflation is low, as is the cost of borrowing but job security is by far the most concerning aspect. Many employees are currently furloughed, a word that most had to look up on Google to understand, and will they have a job to return to? This will inevitably have an effect on the market, we can only hope that the lenders will be understanding. Once the virus is a  memory, hopefully home ownership will return with gusto, particularly in the new homes sector where the Government’s Help to Buy scheme will be available in its current format for the next 11 months giving buyers a 20% helping hand.

The supply of larger homes, particularly within the Harrogate area is at an all-time low with a mere 150 homes for sale over £750,000, therefore the choice is limited. Owners of larger homes have deferred marketing their properties for many years and it is hoped that the choice will become wider once this current catastrophe is out of the way. The up-sizers from the leafy semi’s will have an aspirational target to aim at, something that has been lacking for a few years.

The burning question is, will values be adversely affected once COVID-19 is a memory? We still don’t know how long this situation will last but once the dust has settled and confidence has returned, the factors look good for our “bubble” and hopefully we will see little lasting damage. North Yorkshire is special with many unique properties and locations, it can’t be replicated, it can’t be beaten. It will still remain what it was, with its people returning to its local iconic landmarks perhaps affording them a greater appreciation than before.

 

This column has been written by Mr Waddington for The Stray Ferret