Of course, we don’t know if the country will go into a second lockdown but we do find ourselves asking the question, what if? The demand for properties across the country since we eased lockdown measures has risen dramatically, RightMove even reporting a 2.4% increase in asking prices.
This boom could be short lived as it’s unlike a standard economic boom which occurs by growth over a period of time. It could be a short-term boom caused by the stamp duty holiday. This mini boom is potentially unstable and open to being volatile unlike a boom caused by years of growth and foundations being put in place.
Does this mean if we are placed into another lockdown would house prices begin to drop?
Some of the financial impacts caused by the last lockdown was how quick it all happened, meaning industries such as that of the property market could not take relevant steps and measures to lessen the impact a lockdown imposed meant. Hopefully now the government has learnt a few lessons and we’ll be able to adapt and have some preparation time.
What could the impacts be?
- Less property viewings – A restriction on viewings would of course have a huge impact on the property market. Most of us would like to view a property before submitting an offer. Virtual viewings could be something we see more and more of, but are viewers going to feel the same impact a viewing in person could have?
- Potential viewers could be made redundant as companies across the country face greater financial troubles, meaning less buyers being able to prove a long-term income. Mortgage lenders could see this a risk factor.
The process takes longer
Selling a property is one thing, getting the sale done is another, a second lockdown could potentially see more people being placed on furlough or working from home. This will affect time-frames of the process as estate agents, mortgage lenders and solicitors have an increased workloads and harder communication processes taking place with everyone involved working differently to how they have ever before.
If we are placed into a second lockdown or not here at Peregrine Property one thing, we pride ourselves on is our customer service and honesty, we’re here to support you all the way with our expert knowledge we’ll be able to advise you with the best options available for you.
To find out more contact us online or call us directly.