Despite the pandemic, August became a booming month for the Real Estate industry in the regions of the United Kingdom — except in London, unfortunately.
Recent reports claimed that parts of Britain are now enjoying price growth except for London whose house prices remain stagnant.
However, this attracted buyers who took advantage of the flat housing rates of London, as market activity started to stabilize the region’s real estate industry. Recent statistics revealed the impressive increase in home sales in the London Area by August.
According to 2020 LSTAR president, Blair Campbell, August marked a strong season for home sales, as “a testament to the pent-up demand caused during the COVID-19 lockdown months.” This accounts for all housing types in the region.
He was not mistaken as sales increased by 22 per cent from the previous year, and had been marked as the second greatest increase in the past three years.
It is undeniable that this sudden interest shown by people towards real estate and property in London is hinged in their desire to better their homes and state of living, given that they are obliged to stay home more often because of the pandemic.
The increase in sales also manifested interesting trends in the London real estate market, and here are some.
People Are Done Waiting
With lockdowns imposed, and the majority of the economy is paralyzed, people’s plans to purchase in the real estate market were put on hold. But as protocols started to loosen by August, there was a surge in numbers and sales.
Experts claim that people are consuming quicker, under the assumption of a second wave of the pandemic. They readily took the opportunity now as supply and prices are still steady. Another wave of the COVID-19 crisis may totally shut down the economy and hurt the majority of the people’s purchasing power.
People Are Staying at Home Longer
Houses used to be transitory, especially when people go to a full-time job, and work away from their hometowns. Many would opt to stay in apartment lofts instead of owning a house to attend to their daily jobs.
But now that employees will be operating under a work-from-home setup, people are forced to stay longer in their houses. There becomes a need for a home conducive enough to work in.
House Renovations and Upsizing
More are now seeking to upgrade and renovate their houses to integrate a workplace within their homes. Many are also in need of upscaling house sizes mainly because of household members needing to stay inside the house longer, all at the same time.
The lack of outside activities means family members, and people staying inside the same house would have to spend most of their time indoors. The need for a bigger space also calls for house upsizing and renovation.
Looming Recession
Given this need in a housing carved by lockdowns amidst the pandemic, it suffices to say that people are more encouraged to buy. But first-time would-be buyers could encounter great financial difficulties.
Economic effects of lockdowns are seen to start a recession by the upcoming year. This could trigger prices to skyrocket, as a natural repercussion of recessions. First-time buyers would have to heavily rely on state funding, more so in credit.
House Buyers Are Now Looking for… Gardens?
In the past months, a good, functional kitchen, and studio-flat types are the hit for home buyers and renters alike. Now, it is predictable that a home office would fancy their liking. But landlords are advised to beautify their gardens as buyers are also prioritizing gardens when looking for an estate to purchase.
Property research from Rightmove suggests that access to a garden ranks as the top priority for both buyers and renters. This is followed by bigger house size, built-in garage, integrated home office or workspace, near proximity to parks, and pet-friendly homes.
Surely the priorities of buyers have now shifted to gain greater convenience, and a wholesome lifestyle when choosing real estate. The interest in gardens also reported that people are now less likely to pick houses in urban residences.
The Reality of Real Estates in London Today
Despite the recent activities in the market, house prices in London pale in comparison with the rest of the UK. Knight Frank, an international property consultant, claims that the real estate economy in London is “weaker than usual.”
As low house prices and supply remain steady in London, it is projected to attract many first-time buyers. This is due to the rare low-price rates in London estate since its market-high prices back in 2015.
Market demands for houses and real estate, in general, are yet to be measured as people are still trying to cope and find alternative ways of living amidst an extraordinary and unique time.
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