If you’re a homeowner or a homebuyer in Wales wondering what to expect in the property world when the lockdown is lifted, you’re not alone. As this pandemic is so unprecedented, even we in the property industry aren’t entirely clear on what the full reopening of the housing market will look like as it’s impossible to predict.
As estate agents, all we can do is use our expertise and knowledge to try and understand what this crisis could mean for housing prices and property demands in Wales.
Let’s take a closer look at what the Welsh property market may look like post-lockdown, and what it could mean for those of you interested in buying or selling:
Sales remain suspended for now
Until the Welsh property market reopens, the sales that were suspended due to lockdown cannot proceed. If you committed to buying or selling your property before the lockdown and have been waiting patiently for weeks, keep in touch with your agent for updates on when you can proceed with the completion of your sale.
Property demand is likely to rise
Based on early indicators, activity levels in the Welsh housing market are likely to continue to rise, due to demand that has built up during the lockdown period. In fact, demand rose by 35% just one day after the government announced that the market was reopening in England.
Consumer confidence may be low
Although demand for housing is on the rise elsewhere, it’s important to be aware that consumer confidence may understandably be low at this economically uncertain time. Some people may be keen to stay put and will not interested in making big financial investments until things stabilise.
On the other hand, another potential consequence of the uncertain economic state could be a boost in demand, which here at H&M Properties , following positive signs in England, we are hoping to see. As people face financial insecurity, they may start to reconsider their housing needs and consider downsizing. Or they may no longer have to commute to work as frequently, with many companies choosing to extend their work-from-home policies well past the lockdown. This could lead to a rise in property demand beyond the most popular commuter zones outside the city.
Economic instability is likely to lead to house prices falling
As we’re set to move into a phase of recession, many forecasters are predicting that house prices may fall by around 10% across the country as a whole this year. These forecasts are based on how house prices have fluctuated based on economic conditions in the past.
However, it’s important to note that house prices weren’t rising particularly fast pre-COVID, in Wales and across the UK in general. It may also be possible that the government will provide more economic support that is geared towards the housing market.
Following safety measures is key
The Welsh government has not yet officially reopened the housing market, and things won’t be exactly the same as they were pre-lockdown when they do.
As estate agents, we hope to be able to open our office premises and perform viewings very soon. The safety of our clients and staff is paramount and so these will be done at a safe social distance. Our virtual tours of properties will become increasingly common, and those who would prefer real-life viewings may need to sign health declarations before doing so.
Although navigating the post-lockdown property market is going to feel a little complicated at first, we can guide you through the necessary steps in line with on-going government guidance.
Sellers will need to take extra care to prepare homes for viewings
Although we will. be advising buyers to don gloves and masks for any in person viewings, not to touch any surfaces and remain at a safe social distance from others, sellers can start to prepare their home for post lock-down viewings with a good deep clean. Clean all surfaces and door handles with a good antibacterial cleaning product between each viewing.
It will take time for the property market to rebuild momentum
So, what happens next? It is going to take time for the Welsh property market to fully kick into action. Many workplaces are still closed, with millions still on furlough. We, like many other estate agents are getting to grips with new government guidance and ensuring that our businesses are ready to adhere to safe work practices. However, there’s no reason why your transaction can’t go off without a hitch.
Want to learn more about how the Welsh property market (including property rentals) will affect your transaction after lockdown?
Feel free to reach out to us at H&M Properties on 029 2168 0006 or www.handmproperties.co.uk and one of our agents will be happy to discuss how the post-lockdown property market will impact your transaction in Cardiff.
Working with property professionals for over 20 years providing advice and services to all property investors.