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The Property Market – COVID-19 and its Effects
February 1, 2022

Stay updated with the latest from our business and the property market!

The Property Market – COVID-19 and its Effects
February 1, 2022

Stay updated with the latest from our business and the property market!

Property Market

The COVID-19 global pandemic has caused an array of problems across all industries, but one sector that has been particularly affected is the UK property market. Interestingly, though, contrary to most other areas, the impact on this sector has been, in the main, a positive one. 

For many prospective investors, property represents an attractive addition to their portfolios. However, in the “new normal” that we are now facing, property investment could be an even better prospect than usual. 

An Overview of The UK’s Property Market Throughout Coronavirus

Although the onset of the pandemic saw house prices in the UK falling sharply, this turned out to be a short-lived trend. Thanks to the government’s introduction of policies to support household incomes, businesses, and the property market, prices rapidly recovered after their initial drop and by the November of 2020, they had reached a record peak. 

Interestingly, throughout the health crisis, the biggest demand for property has been in more rural areas and in the suburbs on the outskirts of cities. Ongoing lockdowns have led families to begin to acknowledge their need for more space and, most specifically, outdoor areas of their own. This in turn has increased interest dramatically in moving out of city centres and outside the greenbelt. 

Larger properties, too, have become more popular, with houses leading the way over maisonettes and flats. This is a trend that has continued for the duration of 2021 and looks set to continue as we embark on 2022. 

Increased Property Prices and Faster Sales

According to the Land Registry, the UK’s average property price had increased to £279,708 as of November 2021. Imbalances between demand and supply have also meant that properties have been selling more rapidly than before. In fact, in December 2021, it took only 39 days on average to agree on a sale. Prices look set to remain high over the months to come as demand remains strong. 

Propertymark, the estate agent trade body, reported that there are, on average, 29 buyers for each available property, and this highly competitive situation has led to almost 40% of homes being sold for more than their asking price. It has been estimated that house prices are likely to rise by around 3% this year and again in 2023. 

Increased Demand in The Rental Market

Not only is demand high for properties amongst prospective purchasers, but it is also high in the rental market. This is especially true for homes outside city centres. Summer 2020 saw an enormous boost in the level of demand for homes to rent, and many prospective tenants were seeking accommodation better suited for lockdown living. 

Houses with yards or gardens, and apartments with shared outdoor spaces or balconies were especially popular, as were homes with access to high-speed internet so remote working could continue. Interest in these types of properties has continued now that the pandemic appears to be in retreat, and the imbalance between supply and demand is even greater in this sector, so those who have invested in buy-to-let properties can have their pick of tenants. 

Investing In the Property Market In 2022 And Beyond

It’s clear that 2022 is a great time to consider investing in property. Investing in strong property assets is an excellent strategy, particularly in the current economic climate, and Thomas Henry Property Investments is on hand to help buyers who are ready to enter the market now that COVID appears to be on the wane. 

As a specialist in investment and development of properties for hands-free investors, Thomas Henry Property Developments can take all of the hard work out of property investment and help you to make amazing returns on your money.