Not only did the COVID-19 crisis temporarily stall the housing market, but the impact of the lockdown and the result of some people working at home full-time, will undoubtedly change the residential market more permanently. The situation we now all find ourselves in is challenging long-held views on where we live, how we live and in what sort of space we live.
10 ways buying, selling, and living in homes will change
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1
Remote working & the home office
Those working at home over the last two months will have realised the value of a home office for making remote working much easier. We are likely to see an increase in desire for either extra space more generally, an additional room to turn into an office, or a dedicated home office area. Those in this group may be looking to move to a house with an extra outbuilding for example, or a garage that can be converted, or indeed those in this group may look to extending their property.
Changing personal circumstances
Cars, bicycles, and public transport
Downsizers, first time buyers, and the bank of mum and dad?
Remote working and the home office
Home expansions
Personal outdoor space and gardens
Upsizers
Virtual technology and the residential market
Remote working and urban flight
The holiday home and short-term rental industry
2
Home expansions
Staying home for 10 weeks means that many households will have found, and had the time to reflect on, how they can increase the space in which they live. To this end we may see an increase in planning permissions for extensions, loft conversions or basement digs as households look to maximise square footage without necessitating the need for a move. However, obviously for some extensions are just not possible.
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3
Upsizers
Those households who may have just about been stretched to their space limits and cannot, for whatever reason, extend, may now, after weeks of ‘staying home’, realise that they are far too cramped and simply need to move to a larger property. We suspect this will lead to an initial boost in people looking to move once lockdown measures are eased to an even greater capacity.
the number of buyers are moving out of London compared to 2019
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DOUBLE
Urban properties
with a garden or roof terrace will likely rise in value quicker than those without
4
Personal outdoor space and gardens
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In some cases, the awareness of the ease of working from home means that many will now find that they do not necessarily need to go into the office five days a week. Households may move further afield in the search of more space and lower density and, increasing commute times when they do go into the office suddenly become less of a deterrent as the trade-off is that this should be less often.
Employers may also be more willing to allow not only remote working more often, but more flexible working principles in general, around time and location. Employees may be able to travel more often at off-peak times, which in many cases means travel may actually be quicker (and cheaper), once again opening up some new suburban or further afield locations, that are well connected.
5
Remote working and urban flight
The stay home order has put into sharp focus for some, the value of their own personal outdoor space. Perhaps those who previously would not have felt the need for a garden or balcony, have suddenly become acutely aware of how desirable and useful it can be as well as its positive impact on health and wellbeing
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The use of virtual viewings was necessitated by the need for social distancing; however, it also means that viewings can take place much more flexibly not only in terms of time, but also location. Where and when viewings take place becomes a lot easier when you do not have to travel to a specific location to meet someone at a specific time. And although this will not replace physical viewings altogether, it may speed up the buying process as the physical viewing will be saved for those who are the most serious and far enough along, in the moving process.
6
Virtual technology and the residential market
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Cars, bicycles, and public transport
7
For those living in more densely packed, urban locations, the need for a car may have come into question during the lockdown. Many car users report not setting foot in their car for several weeks at a time during the crisis, with others taking up cycling on a much more regular basis. This, as well as an increase in environmental awareness generally, could lead to a desire to go ‘carless’ or at the very least a further increase in the car-share economy, which has already taken off over the last few years. This could lead to fewer households looking for off-street parking or ‘better’ parking options, which has sometimes limited home searches in the past. In the short-term however, car and bicycle use might increase, as the desire to use public transport declines due to the social distancing measures.
Buyers searching for a studio or one bedroom flat decreased from 5% to just under 1.5% compared to the previous year
1.5%
Activity in the week following the ease of restrictions:
The number of potential buyers requesting off-street parking are four times lower than this time last year
4x
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the number of London buyers looking for outside space compared to the same week in 2019
2.5x
Activity in the week following the ease of restrictions:
8
Staying home for weeks and months will have also put a heightened emphasis on personal relationships. There may be a rise in those looking to move in together after prolonged separation, while yet others may be looking to find their own homes, moving out of larger family situations, or following the strain of close proximity means others look to divorce or separation. Whatever the circumstances, changing relationships will be a driver of demand in the short-term.
Changing personal circumstances
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increase in regional buyers registering, compared to the previous year
400%
Activity in the week following the ease of restrictions:
9
The holiday home and short-term rental industry
The downturn in travel during the period of lockdown and social distancing has wiped out bookings for those who own holiday homes and rent them out on sites like Airbnb. Many of these people relied on income generated from these property rentals to pay the mortgage, meaning that those who own these properties may now need to release equity and bring their properties to the market quickly.
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Economically, the coronavirus crisis has undoubtedly affected younger people the most, and this group are naturally the largest proportion of first-time buyers. Tighter finances mean some may be in more need of financial support from their families, maybe to gather a deposit, or even just for day to day living. It is possible that we may begin to see some parents with adult children look to downsize their homes to free up equity to pass on to their adult children for their own homes or needs.
10
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Downsizers, first time buyers, and the bank of mum and dad
SEARCH FOR A HOME OFFICE
LOOK FOR A BIGGER HOME
FIND YOUR DREAM GARDEN
SPEAK TO AN EXPERT
SPEAK TO AN EXPERT
MOVE FURTHER AFIELD
BOOK A MARKET APPRAISAL
BOOK A MARKET APPRAISAL
CALL TO DISCUSS your property
CALL TO DISCUSS your property
Stanton St. Quintin, Chippenham SN14
Guide price £1,275,000
Hertford Street, Cambridge CB4
Guide price £675,000
Ellerby Street, London SW6
Guide price £3,950,000
Low Meadows, 21 Manor Park LS14
Guide price £1,100,000
Warwick Gardens, Kensington W14
Guide price £750,000
Horns Lane, Broad Town SN4
Guide price £595,000
Moxon Street, London W1U
Guide price £6,340,000
Mount Street, Mayfair W1K
Guide price £1,850,000
Brightwalton, Newbury RG20
Guide price £750,000
Kettering Road, Northampton NN3
Guide price £325,000
Main Street, West Hagbourne OX11
Guide price £1,125,000
Liston Lane, Liston CO10
Guide price £950,000
Ellerton Road, London SW18
Guide price £2,150,000
St. Cross Road, Winchester SO23
Guide price £900,000
Front Street, Wold Newton YO25
Guide price £750,000
SEARCH FOR A HOME OFFICE
LOOK FOR A BIGGER HOME
FIND YOUR DREAM GARDEN
MOVE FURTHER AFIELD
TALK ABOUT A BETTER MORTGAGE
TALK ABOUT A BETTER MORTGAGE
Brunswick Place, Bath BA1
Guide price £775,000
Ellerby Street, Fulham SW6
Guide price £3,950,000
Stanton Court, Wiltshire SN14
Guide price £1,275,000
Forest Hill, Marlborough SN8
Guide price £950,000
The Causeway, Hitcham IP7
Guide price £325,000
Herondale Avenue, Wandsworth Common SW18
Guide price £2,750,000
Rutland Road, Harrogate HG1 2PY
Guide price £3,250,000
Ground Floor Apartment, Kell Grange HG3
Guide price £325,000
Hampstead Manor, Kidderpore Avenue NW3
Guide price £7,500,000
Greenham, Newbury RG19
Guide price £1,295,000
Grafton Road, Geddington NN14
Guide price £1,950,000
Ascott, Oxford OX44
Guide price £1,800,000
Long Melford, Sudbury CO10
Guide price £1,600,000