The housing market, coronavirus and what it all means for you.
A couple of months ago, we wrote a blog about the housing market and how COVID-19 was likely to affect it. As predicted, things look very different today, with rules, regulations and statistics changing every day as lockdown continues to lift. So, we thought we’d write a bit of an update and get an idea of what the ‘new normal’ is for the housing market.
The bad news
According to The Nationwide Building Society, property prices are down by 0.1% compared to June 2019. It’s the first time the annual house price growth has been in negative territory since December 2012. There has been a month on month fall, taking the average UK house price to £216,403.
We’re sure this is no great shock to anyone reading this – the UK economy has been hit hard as a result of the pandemic.
The housing market activity slowed sharply because of lockdown measures implemented to control the speed of the virus. Some experts are predicting steep falls knocking more than £30,000 off the average house price as the long-term economic impact takes its toll – eek!
The good news (we like to look on the positive side!)
The housing market is unstable at the moment, and it may continue to be uncertain for the next couple of years, but in the long term, IT WILL RECOVER! So, stay put, be patient and please try not to feel anxious about a market crash.
What can you do in the meantime? If you’re wanting to add value to your home, you still can. Small house extensions, including porches, don’t need to cost too much and will give you that much needed extra space to help you live more comfortably. When the market recovers, you’ll be looking, hopefully, at a slightly higher value.
But, we always say extend for you, not just to add value to your home. If you would benefit from extra space - perhaps your family has grown or you’ve got a new hobby that requires more storage - and if you can afford it, then don’t worry so much about how much value it may or may not add.
The other good news is the Government’s introduction of a stamp duty holiday. Property experts believe the housing market could be reignited by the Government’s offer which will help buyers whose finances have been hit by the slowdown in the economy because of the virus.
Also, if you are in the market for a new home, then you can perhaps buy somewhere that was originally out of your price bracket and maybe leave you with money to spare to make alterations to turn it into your forever home.
Our team can help with all extensions, conversions, alterations, planning permission applications and building control submissions, providing architectural drawings and everything you need to get a builder - or build it yourself! If you’re looking to create some extra space in your home, or you’d like to talk to our experienced team about the best ways to add value in these uncertain times, please do not hesitate to get in touch.