How did COVID-19 reshape London’s property market?

J V — Tue, 13 Apr 2021 17:01:19 +0000

In a year when home became our entire world it’s perhaps not entirely surprising that we’ve seen some great shakes in the property market.

Yet some events have been truly staggering, not least the first house price rise during an economic recession seen in modern history.

Homes & Property takes a look back at the trends that emerged in the 12 months since Covid-19 hit Britain and asks what homeowners and tenants should expect next.

House prices in London have climbed 6.2 per cent since the property market was shut down a year ago this weekend, the fastest rise since 2016.

The sector was shut for two months in spring, triggering fears of a crash that never came, and reopened by the Government with little warning.

Some people purchased their first home online without even viewing it as the sector went virtual, and agents reported a record August – usually the quietest month of the year.

While national lockdowns wiped 10 per cent off GDP (the country’s total income), property prices in the capital soared in the opposite direction. This is highly unusual in recessions and will serve to exacerbate the housing affordability crisis at a time of rising unemployment.

By comparison, property prices fell by 17.8 per cent in the aftermath of the global financial crisis of 2008 as indebted households sold their homes quickly and cheaply.

Source: Evening Standard

» How did COVID-19 reshape London’s property market?

How did COVID-19 reshape London’s property market?