2020 has been a roller coaster ride for the UK economy and residential property markets. When the March lockdown and a temporary shutdown of the housing market was announced, predictions were catastrophic. However, a shift in lifestyle needs and Government incentives have contributed to a surprising bounce back for some markets.
So where are we now and what do the leading indicators tell us might happen next for London and South East residential property markets?
To watch the discussion in full, please click here.
Our team of experts participated on a digital panel to share their thoughts on what lies ahead for the UK residential property market. The panel included Sophy Moffat, head of research, Neil Duffy, head of valuations and James Hyman, head of agency and was moderated by Jo Leverett, head of international residential.
It was clear from the discussions that there are several variables that will affect the outlook for the UK’s residential market. There is, without doubt, divided opinion on how quickly the market will recover. The conversation led to some interesting findings such as:
- During the first lockdown, there was a relative lack of deals falling through and this was then followed by quite a strong rebound in sales volumes through the summer, and the market at a national level is still showing decent levels of activity
- Activity across Prime Central London is being driven by price correction. Demand for well-proportioned houses with good outside space is strong whilst properties that fall outside this category, which represents a large proportion of Central London, is generating interest only if it’s seen significant price reduction
- Despite what you read in the media, certain indicators suggest a high proportion of Londoners are looking to stay in the City – just elsewhere, with the periphery proving popular
There is certainly caution amongst consumers and businesses in response to indications of rising unemployment and slowing GDP growth. However, our panellists agreed that whilst there are plenty of headwinds ahead, London still has all the fundamentals.