We are now entering into our 3rd week of lockdown, and yet I am still speaking with agents from all over the UK were properties are still being sold and let even in these unprecedented times. We ourselves had two completions last week ( both of which were empty properties). The most obvious , and the most common, question I am being asked is ‘ What will be the effect of the virus on the Wigan Property Market in the short, medium and long term ‘
These are obviously unchartered times but we can look back to history to give us clues of what may happen including the more recent bounce back that is happening in China (and their property market). The Covid-19 situation will touch all parts of the Wigan and UK property market, and so in this article, I will be considering its impact on Wigan property prices, transaction numbers (i.e. the number of people that move home), Wigan buy-to-let to Let landlords and finally tenants and the rents they pay.
The Three Issues with the Virus and the Property Market
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The first issue has to be the lockdown itself. Limitations on society's capability to go about their normal working life will hinder the house buying/selling process. The practical difficulties of moving home and expediting the property sale; from the viewing itself, the Energy Performance Certificate being carried out, the Surveyor checking the property for the lender etc., are all issues. Yet the estate agency and legal industries are coming up with some innovative solutions, from virtual viewings to legally watertight delayed completions, where the old owners stay in the house under licence during the lockdown, and the move will take place after the lockdown period.
Secondly, the UK housing market has never liked ambiguity or uncertainty and this virus will play a part on people’s feelings and sentiment towards moving home (or not).
Thirdly and finally, there are the financial issues with the money people have, be that wages, whether they have a job (or not) and their overall affluence, on the back of the 29.4% stock market decreases in the last two months.
In the next article ( Part 2 ) released later we will have a look at the background economics behind all this
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