Just when it seemed as though the housing market was beginning to calm down, the multinational pharmaceutical corporation, Pfizer, announces that their coronavirus vaccine is more than 90% per cent effective.
While it is still relatively early days, the report of a possible COVID-19 vaccine – and the prospect of initial vaccinations taking place at the start of December – has instilled various markets with a rekindled sense of confidence. Economic forecasts have been upgraded, with several consecutive daily gains on the FTSE 100, and it has even been suggested that GDP may return to pre-pandemic levels by the middle of next year.
The property market
The initial trends positively impacting the financial markets are likely to migrate to the property sector. Analysts predict that they will parallel what we’ve been seeing on traders’ dashboards, but over a longer duration of time.
It’s likely that the vaccine will freshly incentivise buyers and sellers making a last-ditch attempt to take advantage of the current Government incentives and complete transactions before the end of March. With the stamp duty holiday set to conclude, a lull in the market was initially forecast for the second quarter of the year – however, a prospective vaccine and the potential of a return to normality in the spring is likely to give the buyers the confidence they need to reinvigorate the market.
The property market thrives on optimism. The mere glimmer of an easing of (if not a total end to) the pandemic has generated an indisputable sense of hope. Estate agents may need to prepare for stubborn sellers dismissing low-ball offers – emboldened by the increased likelihood of a vaccine
Return to cities
With no theatres, restaurants or nightlife – city dwellers have been reevaluating their lifestyle in the wake of the pandemic. People discovered the limitations of a small city flat, as the confined environment proved to be problematic for those using the space for work, exercise and leisure.
Demand has therefore grown for properties with outdoor space, which has benefitted the rural housing market as well as suburban locations. As a result of this, the one property type that has under-performed in 2020 is the large flat – however, with the vaccine now on the horizon, it’s highly likely that buyers will see the rekindled opportunity in urban housing.
The vaccine will rejuvenate the former bustle synonymous with city living. Therefore it’s not a question of will the lustre return to Britain’s major conurbations – but rather, a question of when will it happen.
At Targetfollow, the news regarding the vaccine and its positive influence on the housing market instils us with great optimism for the future of real estate. Royal Tunbridge Wells continues to be one of the country’s hotspots – an area in which we have three beautiful residential properties on offer.
To fund our plans for future acquisitions, we’re currently selling a variety of assets. For more information, click here.