As lockdown is slowly eased – we’re beginning to glimpse the light at the end of the tunnel. While the Bank of England’s “worst-case scenario” predicts a serious UK recession – the global situation continues to change on a weekly and even daily basis.
The disequilibrium instigated by the COVID-19 pandemic, tarnishes the accuracy of economic forecasting – where we will be in six months’ time is impossible to predict.
Despite the uncertainty; a resurgence in momentum within the property sector has been noted following last week’s market reopening. This noted recovery has instilled other industries with hope of a similar resumption in trade.
The road to recovery
With most industry forecasts initially assuming the market to remain closed until June, at the earliest – the recent reopening of the property sector took most firms by surprise. The upturn in custom is likely supplemented by individuals becoming fatigued by their home and surroundings, during the lengthy lockdown.
These promising figures further support the theorised ‘v’ curve recession. The evidence being – the economy declined at an incredibly sharp angle; thus one could anticipate the ascension to be similarly steep.
In terms of predictions for the sector’s future; it’s clear that the volatility of the current situation may dissuade aspiring homeowners. While this may disturb the government drive to entice people onto the housing ladder – it is greater reason to support and facilitate the rental market and buy-to-let investments.
Just as cabin fever is deemed to be the contributing factor to an influx in property sales; a similar surge in customers can be anticipated for the retail sector. Government orders have resulted in the closure of countless stores – however, it’s not difficult to imagine the industry emerging from the crisis; catering to shoppers who’ve saved money during the lockdown – ready to inject cash into the economy.
In order to weather this storm and absorb the likely ‘revenge spend’ – the retail sector needs to ensure that appropriate hygiene measures are taken to diminish the risk of customers contracting or spreading COVID-19. On Tuesday, Chancellor Rishi Sunak stated that the best way to support the hardest-hit businesses is to help them reopen. It’s easy to envision the government working with retailers in providing an appropriately sanitized environment; helping distil consumer concerns.
There has also been a rise in virtual property viewings. Whilst this trend may initially appear to be a mere temporary reaction to government impositions – the proven convenience/success rate of video tours may result in property companies permanently instating the marketing method.
Whilst physical viewings and valuations continue to take place – remote video viewings are proving fantastic for those in the earlier stages of their search. Once they find a property they are genuinely interested in – the in-person viewing takes place. Much like the retail sector; strict health and hygiene regulations are maintained during this process – the maintenance of social distancing and avoidance of physical contact are of paramount importance.
Since the company’s inception in 1992, Targetfollow understand the importance of agility in regards to business management. Although there are obvious challenges in the months ahead; we will evolve and strategically reconfigure – aiming to re-emerge as a stronger, more technologically cohesive company.
“Post Coronavirus, as with any serious economic impact, businesses will recover, re-base themselves and rebuild with alternative ways of doing business, marketing and promoting their services to their clients and customers.”
– Paul Burnett – Associate Director, Targetfollow Group