News reports, or more to the point journalists, are constantly trying to give a spin on a Covid Recession or a Covid Depression or ‘Things ar elooking up’! Just this morning the times reported;
One report by The Times headlines with;
“Coronavirus: Housing market rebounds as sales increase by 137%”
“The rebound in housing demand is not solely explained by a return of pent-up demand,” he said. “Covid has brought a whole new group of would-be buyers into the housing market. Activity has grown across all pricing levels, but the higher the value of a home, the greater the increase in supply and sales as people look to trade up. New sales in London are lagging as buyers look at commuting and moving to the regions.”
Then on the in same paper on another page;
UK house prices 2020: how has coronavirus affected the housing market so far?
“The Centre for Economic and Business Research (CEBR) said on April 14 that property prices would fall 13% by the end of 2020. On April 20 Rishi Sunak, the chancellor, launched the Coronavirus Job Retention Scheme.
This week the CEBR revised its forecast to a fall of 8.7% this year. Kay Neufeld, head of macroeconomics at the CEBR, says that there will be a gradual decline in house prices this year and that there could be “a bit of a cliff edge” when furloughing comes to an end. We are still at the start of a major recession and as soon as the job-retention scheme comes to an end we could see a reduction in household incomes and reduced demand for housing,”
We just need to look at a graph which paints the direction in which property is heading:-
Some fundamentals
- The government has paid the wages of millions to the tune of billions
- The government has paid out loans and grants to companies
- The government is plowing millions into the NHS
- The government will soon stop ‘printing money’!
So as the country sobers up after a bad bout of ‘Covid Pandemic’ and no doubt part 2 is a few months off – the financial curall will be a very bitter pill to swallow, with increased taxes and austerity. The likes we have never witnessed.
The economy will be fuelled by planting ‘housing development schemes’ seeds to bolster and kick start the UK’s ‘Wheels of Industry’. This is a tried and tested formula. When the chips are down – throw some chips on to the development pyre.
As the economy falters with businesses closing, rising unemployment – levels not seen for decades – a rise in personal debt, bills, rents and mortgages, it will hit the housing market hard. Over the coming months we will look at area house price changes.
And as always we continue to advise our clients on how and what to do getting the best price for their property, with speedy completions.
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