Home Government policy Coronavirus Covid 19 and its impact on property

Covid 19 and its impact on property

Home sellers and buyers remain undeterred from their transactions by the growing outbreak of the Coronavirus. 

83% of home buyers and sellers undeterred by COVID-19

Our research shows that: – 

  • 83% of home buyers and sellers will not put a house purchase or sale on hold this year because of the current threat posed by the Coronavirus. 
  • Just 9% of people stated that they were in the process of buying and selling but have now called it off and decided to wait.
  • A further 9% of people originally planning to buy or sell this year are also now deciding to put it on hold. 
  • Despite the number of UK cases starting to climb, 69% of people also stated that even if COVID-19 became a more serious threat due to it starting to spread they still wouldn’t let it stop them buying or selling a house. 
  • Looking back at historical outbreaks it would seem as though this defiant attitude is nothing new. 
  • During the flu pandemic between March 2009 and August 2010, UK house prices increased by 12.3%, 17.5% across the capital. 
  • While the threat of the Ebola virus remained away from domestic shores, there was also no decline in UK house prices due to wider economic and investor related turmoil, with prices increasing 14.4% across the UK and 26.6% in London. 

It seems that home buyers and sellers will not put a purchase or sale on hold this year because of the current threat posed by the Coronavirus. 

Just 9% of people stated that they were in the process of buying and selling but have now called it off and decided to wait, with just a further 9% of people originally planning to buy or sell this year but also now deciding to put it on hold. 

Regionally, it’s those in Scotland that are the most defiant with 90% keeping calm and carrying on with their property transaction, while those in the North West were most conscious of the outbreak with just 77% stating it wouldn’t stop them transacting. 

Perhaps surprisingly, those most at risk in the 65 and over category were the least deterred, with a huge 96% transacting on their property purchase or sale come hell or high water, while those aged 18-24 were the most conscious with 30% calling off a current sale or purchase and a further 27% deciding against it this year. 

Despite the number of UK cases starting to climb, 69% of people also stated that even if COVID-19 became a more serious threat due to it starting to spread they still wouldn’t let it stop them buying or selling a house. 

Looking back at historical outbreaks it would seem as though this defiant attitude is nothing new. During the flu pandemic between March 2009 and August 2010, UK house prices increased by 12.3%, 17.5% across the capital. 

While the threat of the Ebola virus remained away from domestic shores, there was also no decline in UK house prices due to wider economic and investor related turmoil, with prices increasing 14.4% across the UK and 26.6% in London. 

We’ve just endured a very prolonged period of market uncertainty that caused many home buyers and sellers to adopt a ‘sit tight and see’ mentality. However, since the end of last year, they have returned in abundance and the market has well and truly sprung back to life. 

It would seem that having sat on the sideline for such a long time, and while the threat of the Corona Virus remains at arm’s length for many, the mere suggestion that a global pandemic would now stop them from buying or selling is completely out of the question. 

Growth during previous pandemics suggests that house prices will also remain unaffected and while we may see a stutter in foreign investment from areas to have been worst hit, domestically we will soldier on and won’t let it dent our aspirations of homeownership.

Have you put a current or future house purchase or sale on hold because of the threat of the Coronavirus?
Answer Percentage
Yes – I was buying or selling currently and have decided to wait 9
Yes – I was planning on buying or selling this year but have decided to wait 9
No 83
If Corona Virus were to become more serious in the UK, i.e start to spread, would this stop you from buying or selling a house?
Answer Percentage
Yes 31
No 69
Have you put a current or future house purchase or sale on hold because of the threat of the Coronavirus?
Answer East Anglia East Midlands London North East North West Scotland
Yes – I was buying or selling currently and have decided to wait 7 9 13 10 10 5
Yes – I was planning on buying or selling this year but have decided to wait 8 4 8 6 13 5
No 85 87 79 84 77 90
Answer South East South West Wales West Midlands Yorkshire and the Humber Northern Ireland
Yes – I was buying or selling currently and have decided to wait 6 11 5 11 5 14
Yes – I was planning on buying or selling this year but have decided to wait 12 10 9 6 11
No 82 79 86 83 84 86
Have you put a current or future house purchase or sale on hold because of the threat of the Coronavirus?
Answer 18-24 25-34 35-44 45-54 55-64 65 and over
Yes – I was buying o… 30 27 12 3 3 1
Yes – I was planning… 27 13 10 7 8 3
No 43 60 78 90 89 96
Location Flu pandemic Ebola virus
AveHP – March 2009 AveHP – August 2010 Change / growth AveHP – March 2014 AveHP January 2016 Change / growth
United Kingdom £154,452 £173,417 12.3% £179,537 £205,464 14.4%
England £159,340 £180,807 13.5% £190,037 £220,361 16.0%
Wales £123,104 £132,453 7.6% £130,464 £140,015 7.3%
Scotland £125,727 £133,825 6.4% £126,650 £136,790 8.0%
Northern Ireland £140,190 £132,164 -5.7% £103,570 £118,851 14.8%
North East £117,079 £126,174 7.8% £116,317 £121,096 4.1%
North West £124,654 £135,743 8.9% £130,061 £143,139 10.1%
Yorkshire and the Humber £123,833 £136,896 10.5% £131,800 £144,594 9.7%
East Midlands £129,915 £144,010 10.8% £146,448 £164,946 12.6%
West Midlands £126,231 £137,155 8.7% £137,210 £153,365 11.8%
East of England £168,263 £194,104 15.4% £208,325 £255,235 22.5%
London £247,264 £290,646 17.5% £361,400 £457,466 26.6%
South East £191,156 £224,123 17.2% £243,371 £293,678 20.7%
South West £171,666 £196,163 14.3% £200,618 £226,547 12.9%

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