The PM’s Re-opening Roadmap & the UK Housing Market

"Boris Johnson Covid-19 23/03" by UK Prime Minister is licensed under CC BY-NC-ND 2.0

On the 22nd of February, the Prime Minister provided details of his and his government’s 4-stage roadmap to getting the UK out of lockdown. Naturally, for those looking to buy or sell a home, the pertinent question is what exactly does this mean for the UK’s housing market?

The Details of the Plan

Well, we’ve been in the 3rd total lockdown in the UK since January the 6th and the figures show that new Coronavirus infections are dropping. The four stage plan starts on March the 8th, with a five week period separating each stage. So, the key dates for us at this point are:

❏    Stage 1 - March the 8th

❏    Stage 2 - April the 12th

❏    Stage 3 - May the 17th

❏    Stage 4 - June the 21st

Will He or Won’t He Extend the Stamp Duty Holiday?

Despite everything that we’ve just mentioned, a lot still rests on whether Chancellor Rishi Sunak extends the Stamp Duty holiday that’s currently due to end on the 31st of March. The official line on this is said to be announced in the government’s Spring budget on March the 3rd, so we’ve not long to wait.

Seller Reluctance to End?

What has been seen during the third UK lockdown is that those looking to sell have been a little reticent in listing their properties due to fear of welcoming Covid-19 into their homes. This has led to something of a reduction in supply and an increase in prices.

When social distancing restrictions begin to ease, this is surely going to redress this imbalance and result in a surge of properties coming onto the market. Throw in the fact that people will feel more hopeful about the future now that a plan is in place and it would seem that there are an interesting and perhaps exciting few months ahead for UK property.

Unemployment Rates Set For a Boost?

Another influencing factor on the housing market is employment and according to the Office of National Statistics, the jobless rate is sitting at 5.1% - a five year high. That said, it’s not all bad news, as the Chartered Institute for Personnel & Development (CIPD) have said that there is evidence that over half of all UK employers are looking to take on new staff over the next quarter.

It stands to reason that there should be something of a boom as UK commerce gets back on its feet and with a sharp drop in unemployment rates on the cards it should offer further hope that things are going to get better in this area.

 A Brighter Future Than Expected?

Of course, it’s far too early to be making bold predictions about what the UK property market is going to do, but evidence most definitely exists that good things could happen.

With a clear plan in place, possible lowering of the unemployment rates and more sellers coming onto the market is going to increase activity. Plus if Mr Sunak decides to extend the Stamp Duty Holiday in the next few days, we could see a brighter future than many predicted.

For now though, it would seem to be a matter of sitting back, waiting and seeing what happens.

We’re in the property development game ourselves at FS Properties, so we’re watching the market closely just like you. We have a number of developments across London and we bring you articles like this one to help you make wiser buying decisions.

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