No signs of a price dip as the market bounces back

Gordon Campbell

16^TH June 2020

As we head into what we all hope will be a sensible exit from lockdown, it’s inevitable that the past few weeks immersed within the confines of our own homes will have changed the outlooks, priorities and material needs of many homeowners and renters.

 And it will be interesting to see how these factors could impact the property market.

 There are also other factors to take into consideration.

Will remote working change the way businesses run and provide greater flexibility for a larger proportion of the workforce, therefore influencing the way people do, or don’t commute?

Or maybe people will require another room to incorporate that new office and realise that their current space is not enough for their future needs?

Will the attitudes of the younger generation change towards the huge commitments necessary for getting onto the housing ladder?

And will the homeownership dream even be achievable for the younger generation in the current economic climate?

Could this combination of factors lead to even more people becoming reliant on the rental market?

 In our last blog, Is Now a Good Time to Invest in Glasgow Property (click the link) we mentioned previous price trends and the continuing demand of Buy to Let Property.

What is New Market Data Showing?

The latest data released by Rightmove this morning has revealed that pent-up home mover momentum has translated into the market's best-ever week with buyers flooding back after lockdown.

According to the figures, average asking prices of property coming to market was up by an average of 1.9% (+£6,266) to £337,884 this month compared to March, before the housing market was put on hold.

Now that the market has been open since 13th May there is sufficient new seller asking price data.

New supply is also starting to recover, though there are over 175,000 missing sellers that would have come to market between 24th March and 12th May, when compared to the same period in 2019.

Whilst it’s still early days, Rightmove’s statistics covering 95% of the market indicate far more resilience than had been expected, with a strong initial bounce-back in all metrics.

Any thoughts on the data?

 There are no signs of panic selling or even a price dip.

Will the attitudes of the younger generation change towards the huge commitments necessary for getting onto the housing ladder?

And will the homeownership dream even be achievable for the younger generation in the current economic climate?

Could this combination of factors lead to even more people becoming reliant on the rental market?

The answer to that in our opinion is absolutely yes.

What about rental Demand?

This is the big question for landlords, and this could well be the case amidst fresh concerns over the potentially precarious nature of a variety of people’s short and medium-term employment status, and these type of renter who would have lived in shared short term accommodation of multi lets and HMOs.

There will also expect to see the continuing increase in demand in single lets eg Buy to Lets for these reasons.

There will undoubtedly be a seismic shift in rental attitudes and needs post lockdown, and landlords must be fully aware of any implications on potential yields.

Adapting to what will undoubtedly be described as the ‘new normal’ will be easier for some landlords and tenants than others, but the fact remains that the importance of the private rented sector will only continue to grow and it will prove to be the backbone of the property market in the coming months and beyond.

Final thoughts

As we mentioned in our last blog,Is Now a Good Time to Invest in Glasgow Property  what Alliance and our market in Glasgow offers.

Glasgow is the the Buy to Let Capital of the UK.

Buy to Let, as boring as it may seem for some investors, is the bedrock of property investment in the UK, and will continue more so than ever to be so.

It has made a lot of people very wealthy and many investors we have helped in the last 6 years.

More than ever now, BTL will be increasing in demand due to social distancing and sharing restrictions in properties.

That is why Alliance Property Group sells Buy to Let property with multiple strategies that are: Off Market, Below Market Value, Strong Yields, Strong Cash Flow, Areas of Demand. With multiple strategies.

We hope you've enjoyed the content and information which we've sent you recently and that it's given you a worthwhile and further insights into the world of property investment.

If you're now keen to take the next steps in property investment and you haven't had a chance to meet or speak to us yet or don't know where to start we'd be delighted to help you clarify your plans by having a conversation with you.

We can discuss about budget, objectives, the uniquiqe service, properties and parterning team we offer, and share our 35 years of knowledge and experience.

Click the link below for more information and to schedule in your call at a date and time suitable to you. 

https://allianceproperty-group.co.uk/Contact-Us/Contact-Us/

Thank you as always for your business and support.

Take care