How will Covid-19 Affect the Welsh Property Market?

Earlier this year the Welsh property market forecast 2020 was looking up. With the resolution of Brexit in sight, experts predicted a ‘buoyant’ spring.

Then Covid-19 happened.

We know how the rest of the story goes.

After months of lockdown, and a pretty stagnant market, here in Cardiff and the rest of Wales, frustratingly, normality is still a little way off.

We are looking forward to the day we are able to recommence viewings, and hope to welcome you sooner rather than later, but if you are concerned as to how coronavirus will affect property prices in Cardiff, then read on for the full analysis from H&M Properties, and learn how the Welsh housing market is set to bounce back.

Getting Ready to Open For Business

Over the past few months we’ve all been honing our baking skills, zooming left, right and centre and adapting to the ‘new normal’, as we await the easing of lockdown. While home viewings are still not permitted in Wales, we have already seen positive signs with Rightmove announcing in May, when UK restrictions were lifted, that traffic to its property website returned to pre-lockdown figures with 5.2 million visitors – an uplift of 4 per cent on the previous year. In the subsequent week, a reported 11,000 new properties were listed for sale.

As many of us remain hopeful that the Welsh property market will re-open soon and slowly regain momentum, we’re also aware that it will take time to return to pre-coronavirus levels.

Ultimately though, people need to move home for a whole host of reasons. Be it for relocating, expanding families, for work, or just for a change. This is particularly true of those aged 18 to 30 year’s old, who move on average three of four times during this age.

There’s another important factor, one you’re probably familiar with by now: remote working. Due to the coronavirus pandemic, more people are now working from home. As a result, we may see people looking to upsize to properties with home offices in the future.

Other studies suggest that 15 per cent of people are considering moving house due to life in lockdown. A further 34 per cent state that they feel differently about their home since Covid-19, such as the importance of a garden or the need for more space. So, while the Welsh property market may be slow in the short-term, there’s plenty of reasons to believe that long-term, it will bounce back.

Housing Market Coronavirus Impact

It may be too soon to predict the impact of coronavirus on Welsh property prices, but the Land Registry figures for Wales are a useful indicator.

Although their data only runs until January 2020, it shows that the average house price in Wales was £161,719 at that time. It also reveals that property prices dropped by 2.9 per cent on the previous month. Although in good news, this had risen by 2.0 per cent compared to the previous year.

But in keeping with the positive vibes, the housing market and our team at H&M Properties remains optimistic.

In their latest report, Robert Gardner, Nationwide’s Chief Economist, said that the policies put in place by the government to support the economy have helped limit damage. As we all know, these include furlough schemes and other financial support, which help to keep borrowing costs down.

In an encouraging statement, Robert Gardner said: “These same measures should also help ensure the impact on the housing market will ultimately be less than would normally be associated with an economic shock of this magnitude.”

The Long-Term Outlook

As you’d expect, a snapshot of Welsh property prices right now shows the dent that coronavirus has made.

However, there are many reasons to be optimistic. As we know, things can change quickly, and once we return to the ‘new normal’, it’s expected for demand to return with property prices in Cardiff reflecting this.

If you are looking for more information about the property or rental market in the coming months, please contact me Daniel Hopkins for the latest advice at H&M Properties on 029 2168 0006.