The Effect of Covid on the Property Market

Covid-19, and the resulting lockdowns, hit the entire economy. Additionally, it completely upended our very way of life. Overnight, families and businesses alike had to adapt to a world which became all but inaccessible. The property market saw some of the most dramatic shake-ups. But what exactly was the effect of Covid on the property market and are we back to normal?

As social distancing measures were introduced, house viewings proved tricky to pull off. Working from home became the norm for many. Eventually, workers adapted and grew to love taking zoom calls in their pyjamas. Granted, efforts have been made to get workers back into the office, with many missing the camaraderie.  Nevertheless, the pandemic forced many to have a rethink on what they needed from a home. What’s the use of having an expensive house near a train station if you no longer need to commute?

These thoughts likely ramped up when the Government stepped in to support the market. To keep property sales ticking along, a stamp duty holiday was introduced to reduce property investment costs. Suddenly, buyers were incentivised to invest. But during the same period, a collective rethink on what was essential occurred. Within just 2 years, a new set of priorities emerged.

How Covid changed priorities in 2019 vs. 2021

To understand what’s important to the market, we surveyed UK-based homebuyers and investors on what they considered the most important factors in a home. We conducted this survey both in 2019 and 2021 and certain shifts in tastes were clear to see.

In 2019, before the effect of Covid on the property market kicked in, our survey revealed the top 15 factors that were important to buyers. A few expected priorities emerged, such as square footage and garden space. However, how close a property was to the nearest city or town proved especially important to buyers in 2019. At the same time, the potential for extensions and conversions ranked towards the bottom, in 14^th place.

However, drastic changes were seen as we reached 2021. Last year, broadband and mobile connectivity jumped from 8^th place to 3^rd. This could be the result of workers needing strong connections for their zoom meetings and home offices. Extensions and conversions also jumped to 8^th place. As people spent more time in their homes than ever, perhaps they wanted to make sure they were as comfortable as possible. Indeed, transport links plummeting to 14^th place. Instead, many homeowners appeared keen to stay put and upgrade.

Property key selling points in 2022

Even now, homebuyers appear keen to make their homes as nice as possible, as opposed to finding a property close to an office block. Rightmove investigated what are the key selling points of a home in 2022. Garden offices, bi-fold doors, and orangeries took the top spots. What’s more, nearly two thirds (63%) of UK homeowners plan to upgrade their properties over the next 10 years in a bid to cut energy bills.

For property investors, taking note of these preferences could prove important. We may see a reversal of the “lockdown exodus”. Over the last 2 years or so, many city-based workers realised they no longer needed to be near the office. Many flocked to the countryside in search of greenery and space. But, as normality returned, some of these buyers appeared to regret their decision.

Estate agents have seen a rise in “boomerang buyers”. People are leaving the country to return to the excitement of the capital and other large cities. As these buyers return, they may be in the market for desirable homes with large gardens, green credentials, and strong internet connections.

Source: Rightmove, NatWest, The Telegraph