Covid-19 Expected to Increase Demand for UK Garden Homes | Housing market

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The UK housing market remains depressed despite a resumption of inquiries from people wishing to buy, but estate agents expect demand for homes with gardens to increase sharply in the next two years due to the Covid-19 pandemic.

Although real estate agents were allowed to reopen in England on May 13 after an eight-week closure, home sales and prices continued to drop across the United Kingdom in May, according to a monthly survey of surveyors and real estate agents from the Royal Institution of Chartered Surveyors (Rics).

A balance of 35% of real estate agents said that the newly agreed sales were down. The balance is deducted from the number of agents who said sales increased from those who said sales fell.

As the housing market in England picked up, demand from new buyers increased significantly but remained in negative territory. A 5% balance of real estate agents reported lower inquiries in May, compared to a record 94% in April.

Short-term sales forecasts remained flat in May, with the majority of agents now expecting slightly higher sales over the next 12 months.

Michael Darwin, a chartered surveyor in Northallerton, North Yorkshire, said, “The past three months have been the strangest I have known in 39 years. There are surveys, but can people get financing to buy, jobs that are safe and how long will the danger of Covid continue? If anyone has answers, they remain very silent. “

The Rics house price measure sank deeper into negative territory. A balance of 32% of real estate agents said prices were below 22% in April, marking the lowest figure since 2010. Even at 12 months, a balance of 16% of agents expects prices to drop.

This echoes surveys by mortgage lenders nationally and in Halifax, which showed that house prices fell again last month.

Rics said there were no major changes in Scotland, Northern Ireland and Wales where restrictions on estate agents were not removed in May.

The vast majority of surveyors and real estate agents (81%) say that houses with a garden or balcony will be in demand over the next two years, as well as houses near green spaces, and 68% believe that properties with more private and less common space will become more desirable. Towers and properties in overcrowded urban areas are expected to be less in demand.

Simon Rinsinshn, chief economist at Rics, said: “Following the reopening of the UK housing market, the pre-Covid sales that were underway are now largely underway. This is encouraging, but it remains to be seen how far this improvement will continue.

“Much will inevitably depend on the macroeconomic environment and, in particular, on the resilience of the labor market as the leave scheme ends. So far, survey respondents have noted that the transaction trend is broadly stable. “

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