It’s been a long few months by anybody’s estimation, and certainly for those of us working from home or with young children, but we recognise the necessity to stay indoors in order to protect ourselves, our loved ones and others.
There has been, of course, legitimate concern that essentially locking down the country may cause long-term damage to the economy and the market, however, the recent statements by the prime minister and chancellor should hopefully enable businesses back to work and start things moving again.
One thing that has become increasingly apparent is that there has not been any significant collapse or even drop in property demand over this period, which is extraordinary given the circumstances.
Despite some initially dire predictions it seems like the property market as a whole has found itself somewhat incubated from the damage that other industries have been seeing.
This appears especially true for Buy to Let and for the Private Rented Sector (PRS) as demand continues to increase whilst supply fails to grow.
With that in mind, whilst the UK stays in any sort of lockdown there’s a real sense that, rather than any type of demand for PRS dropping, it’s merely been paused, and with the recent announcement that estate agents can open, and property sales can recommence, the market may soon be open again.
If anything, there’s data supporting the idea that lockdown has even increased demand in the market whilst supply has been in an enforced state of delay. Those who had previously simply been considering moving home have now been provided with the motivation they were looking for.
That appears to have been lent further support with the news that almost 400,000 home sales worth a total of £82bn have been put on hold as a result of the housing market lockdown.
This, it is understood, will translate into a fairly swift recovery and then into growth later in the year as the fundamentals of the market remain broadly the same. The demand for rental property simply isn’t going to decrease regardless of economic circumstances and, if anything, economic shock is likely to increase whilst supply fails to increase in line.
This will more than likely mean that quite aside from £82 billion of property completing fairly quickly, it may pale insignificantly compared to the business that is completed afterwards.