Post-pandemic property market thrives as buyers get busy

POST-PANDEMIC PROPERTY MARKET THRIVES AS BUYERS GET BUSY

By Martin Williamson, Head of Residential Property at Latimer Hinks Solicitors

The property market has experienced something of a sleepy period over the past couple of months, during the lockdown. Not that you’d know that if you work in the sector! Estate agents and conveyance lawyers have still been remotely beavering away in the background making sure it was all systems go when the government gave us the green light, but for someone wishing to move house, it seemed painfully quiet for a good few weeks.

On 13 May, the restrictions on estate agents, and other professionals who support moving house, such as removal companies and cleaning firms, had restrictions lifted, meaning they could now operate if appropriate health and safety and social distancing measures were met.

Since then, the market has seen a rapid positive boost, with serious potential buyers champing at the bit for the opportunity to get their hands on a new home. This has been aided by the introduction of new technology, including virtual viewings, which mean that buyers can see the property for the first time remotely, avoiding unnecessary contact with others.

In my own work, I’ve seen an influx of new instructions, as people are keen to, quite literally, move on from the past few months, and the work we’ve done remotely has allowed deals that were on hiatus to move quickly and clear the path for the next batch.

It was also incredibly heartening to read that online property website Rightmove had a record number of visitors at the end of May, with six million people logging on to search for new properties, and better still, a record number of people making enquiries. This shows that the market is not just behaving positively in theory, it is also demonstrably bringing out the serious buyers.

I spoke with a number of local estate agents to see how business had been for them since the restrictions relaxed on 13 May, and unsurprisingly, they were incredibly positive. All had been busier than they expected and felt that the market was similar to what could usually be expected at this time of year.

James Carver from Nick and Gordon Carver Residential said: “We have seen significant levels of activity since the restrictions were eased and there has undoubtedly been some pent-up demand. In the last two weeks, we have been able to safely arrange 570 viewings and 75 market appraisals, with the number of sales we have agreed being similar to what we would expect for this time of year. With the properties that are already under offer, we have seen minimal fall throughs, all of which is very encouraging given the circumstances.”

Simon Wright from Robinsons Estate Agents said: “There has certainly been a pent-up demand, people have been sitting and waiting and all come out at once.  It is feeling very positive. Rental is very busy and sales are following.”

Tim Pennington at Northallerton Estate Agency said: “Properties sold before lockdown are progressing and some chains have progressed further due to sales. The demand for rental has also increased, so we’re crying out for houses to meet these requests. Landlords in the region are finding their houses move pretty quickly.”

Tim Gower from Robin Jessop Ltd said: “It has been an extremely busy period and the strong demand from buyers has been continuous. We’ve had a significant number of offers within days of new properties being listed. There is particular demand from cash buyers who seem keen to move to the countryside – we are calling it the “rush for rural”. It seems that more buyers are looking at working from home and want to do this in attractive rural locations, particularly where high-speed connectivity is available. If things continue as they have been, I can foresee that a “rural premium” will need to be paid to secure the most desirable country properties.

Please note: This article is intended as guidance only. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks. In addition, no responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by the firm.