The housing market has certainly changed during the coronavirus pandemic. In lockdown, there has been an emphasis on home value and DIY for both the rental and the sales market. Here we look at the positive and negative impacts of covid and the property market.
The average house price in Wales has risen by 6% over the last year compared to the average apartment price in Wales rising to 3.5%. This would highlight the importance of outdoor space and extra room inside for perhaps an office etc. In addition the average time it takes to sell a house has decreased from a 50 day average to 44 days. This shows how the property market is continuing to move at a faster rate than usual, with more people looking to purchase homes than before. Estate Agents are recognising that it is currently a ‘sellers market’, with a high amount of viewings per property, several offers and a quicker purchase.
In regards to the lettings market however, it is more likely that people are staying put. With what is usually is an annual cycle and students and professionals alike looking for new accommodation every 12 months, as rentals have the advantage of flexible tenancies and moving around. Tenants are now more likely to renew 12 month tenancies and are less likely to move so often. Tenants are looking for additional security and assurances amidst the pandemic, which has meant a quieter year for letting properties. Renters are more likely to fall into rent arrears and landlords have been reluctant to increase rents in such a difficult time.
There seems to be a trend where people are looking to purchase a home lower than their budget, so that they have a ‘security buffer’ and money put aside to do their own home improvements. Due to the uncertainty of the pandemic, people are less likely to spend all of their budget to get on the property ladder and are thinking about security and what they want to do to the home instead. Garden improvements as well as creating a home office, for those who now work from home.
Tenants are also looking to make improvements to rental properties, as they are more likely to stay longer in their rented accommodation, they want to establish themselves in these properties and therefore more likely to make home improvements. Especially if there is a garden, as they look to make improvements to outdoor space as renters recognise they’ll be spending more time in the home and garden.
Some effects may seem more obvious than others and it’s interesting to evaluate both the sales and lettings market and what each market is doing with their properties. If you are looking to have your property valued or managed don’t hesitate to contact us.