During the course of 2020 in regard to the Pandemic, its limitations and consequences, the behaviour of buyers has changed significantly. People are now looking for more private and detached spaces. This is because of the notion of social distancing, that was imprinted in our mind and created the impact which will remain for years to come.
Our experts believe that this and other Covid-19 related factors will reshape the behaviour of buyers, for at least the next decade. The homes, the lifestyle, the habits – there is no area of our lives that has not been impacted by the latest pandemic events even with a promising roadmap leading to the lifting of lockdown and easing of restrictions. 2020 was a struggle for real estate markets all over the world – both for agencies and people willing to invest. However, there is a silver lining there too – now everyone has a revised list of priorities when it comes to investing in property.
Staying at home was not easy. Buyers will want properties to offer good outside entertaining spaces that come in the shape of terraces, balconies or shared outdoor spaces – even if they still have to stay in, they will want to have an opportunity to spend time outside. They will be looking for large gardens and an easy connection between the house and the garden – a space that can also serve as an outside kitchen, lounge area, or simply a place for family members to socialize. Therefore, our experts predict this will postpone possible downswing, i.e. resulting in people going for bigger houses.
Working from home was a big change for many who used to work the standard hours of 9 to 5, five days a week. While returning to previous routines seems unlikely, buyers will now consider a functional space that can accommodate a home office or at least a desk that will make working hours more comfortable. Apart from that, the demand for 1.5-bedroom apartments that were difficult to sell before has increased for the same reason – everybody wants a space to work from home that isn’t their bedroom or kitchen table.
What do we predict for 2021?
Central London experienced a real hit from the effects of Brexit and the Covid-19 Pandemic. As prices in these areas dropped, the prices in East London increased. Now Hoxton and Notting Hill are similarly priced, so our experts forecast a return to these traditional areas of the Capital.
Professionals at Vogue Properties also predict a growing demand for properties in London in 2021. Foreign investors are a big portion of the London property market and Brexit will make the UK even more interesting to international buyers, the city will become a central capital and the gateway between America and Europe.
London has always been considered a great investment for buyers around the world especially before the additional 2% stamp duty surcharge to be implemented this April. However, our experts are predicting that this surcharge increase will not affect foreigners from investing in property in the capital.
Although 2020 has been the year of hardships for the economy, the number of inquiries and sales into the UK property market was higher than that of 2019. Leads and sales from 2020 will be closed in Q1 of 2021 which makes 2021 a promising year for the real estate sector.
London always offered a form of safety for investors’ cash and showed consistent returns on property investment. It’s an interesting and vibrant city, rich in culture and full of opportunities. These and other factors make London one of the best places when considering property investment. We are now seeing a flow of overseas buyers and we expect this to exponentially increase towards the end of Q1.
The UK has been struggling with the COVID-19 and Brexit transition; however, new property market predictions look promising. Over the next five years, growth Is expected in the main regional areas. With London’s gradual revival, the UK property market is more varied than ever.