Before 2020, a pandemic seizing life as we knew it seemed a notion that only appeared in our history books. And as we learned about global viruses such as the Spanish flu pandemic of 1918, and the breakout of Smallpox, which is said to have emerged around 10,000 BC and was only wiped out in 1980- modern society made us feel somewhat invincible against another deadly and rapidly spreading disease. However, in early 2020, the Covid-19 epidemic which originated in Wuhan, China, began to spread rapidly across the globe, and within two months there were deaths occurring in all continents due to Coronavirus. From then our understanding of ‘normal’ life became a distant memory, as the world went into hibernation until scientists, health experts and government officials created a plan of action to control the spread and implications of Covid.  

2020 and 2021 were perhaps some of the most dysfunctional and even dystopian years of our lives. Confined to our homes, refrained from visiting friends, family or socialising, redundancies and crashing economies presented daily challenges for billions of people. Fast forward to 2022, and society has begun to move on from Covid- with most nations seeing the virus as something we have to learn to live with, especially after the vaccine was created and distributed quite quickly.  

Last week in the UK, Prime Minister Boris Johnson reported that after two long years of shielding, isolation periods and general restrictions on social and economic aspects of this country- all of these were officially to end as we learn to live with Covid in a strategic way that allows the UK to have a faster exit from living with the pandemic in comparison to other major economies. As the world and economy aims to get back to a certain level of ‘normality’, this could have either positive or negative repercussions on the UK property market. Here at We Buy Any House, we have investigated exactly how will the new Covid rules affect the UK property market? 

Increase in Demand 

Thankfully, since restrictions on the Covid-19 pandemic midway through 2021, there has been an increase in supply regarding property throughout the UK. And even more brilliant is that the demand to buy property has increased significantly in comparison to last year. As of January 2022, the number of prospective buyers in the UK had risen to over 54% above the five-year average, and property experts predict that this year will continue to grow in transactions and prices across the UK property market. 

Restrictions Due to Increased Cost of Living

Typically, when buying a house in the UK, we tend to linger for as long as possible- to see how the UK economy may affect the investment of buying a house. At the end of 2021, The Bank of England revised the current inflation crisis, and warned that by 2023- we will feel the full effects of an increased cost of living. Although this is said to have a minimal impact on the UK housing market at this current moment, its important to be aware of future implications- especially for first time buyers. For now, it's okay to breathe a sigh of relief, because as the supply and demand for property increases, rates are still at a historically low number, and fixed-rate mortgages will help to squash any immediate financial impacts. 

 

 

 

 

New Overseas Buyers: 

When lockdown and travel restrictions were eased last year, there was a sudden influx of overseas buyers arriving in London. This was hugely beneficial to the property market, as their sudden interest in buying property and establishing the overseas buyer market in the UK meant that the UK could benefit of new-build developments and an increased interest in buying existing UK property. Although some parts of the world are taking their time and having a more cautionary approach to relaxing the lockdown rules, by the end of 2022 there is said to be another huge increase in overseas buyers looking to access property in the UK. 

Changes in Renting Out Property

Over the last two years, landlord had to abide by new rules when it came to their leased properties. No longer could a short eviction notice period be handed out, and for a while many landlords ceased rent payments while the country was in lockdown and unable to work. Additionally, there was an increase in the number of landlords allowing pets to stay with their owners in rented properties.  

As Covid restrictions end, eviction notices have now returned to their pre-pandemic state. This means that under section 21, tenants have two months' notice unless there are mitigating circumstances. Furthermore, the agreement on rent payments will go back to how it was pre-pandemic, and tenants will be expected to pay their rent as agreed initially. However, this may be impacted if the tenant has Covid- as they may be unable to work if so. 

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