Knight Frank has issued its market outlook.
As we all expectantly look forward to lockdown potentially being relaxed and better, safer days ahead, dare we also plan our economy’s recovery? The housing market, and indeed house prices, are (whether we like it or not) a barometer of economic health. We all want a V shaped recovery but what measures will be needed?
Knight Frank expects that activity will return as soon as restrictions on movement are relaxed but warn we may also need stamp duty reform to bring back liquidity to the market.
They cite the positive trends from the General Election were translated into market confidence and an uptick in sales pre COVID-19 but acknowledge there will be thousands of lost sales, and even an expansion in volumes over the next year generally may not fully recover those.
The analysis of development and construction reflects our own view that the impact of closing sites and disruption to workforce availability should be short-term and that there is definitely still developer activity.
As we all know, this is still just 'finger in the air', as the lockdown will be sure to continue into May but we need to keep talking and planning the revival to get through the dark times.
If you want to stay in touch with fellow sector specialists do log on to our Shoosmiths COVID-19 hub to enrol on webinars relevant to you and carry on the conversation.
Every housing market downturn has its own unique characteristics. What caused a drop in prices at the end of the last market cycle and drove or stalled any subsequent recovery does not necessarily apply to the next.