Savills' latest update of 14 April 2020 echoes other industry experts' housing related news - there will be a continuation of demand once the signs of the Covid-19 dissipate.
Their key findings are that:
the emergency cut in base rate, the government economic stimulus and short-term mortgage lender support, should help reduce some of the pandemic’s impact
it is inevitable that activity in the market will slow for a period
although social distancing and self-isolation have inhibited buying and selling, technology, such as virtual viewing, is helping to keep the market alive
during the remainder of 2020, sellers will need to remain pragmatic on pricing as the market becomes more dependent on needs-based and opportunistic buyers
activity will return more quickly than historically due to buyers’ concerns over job security and earnings easing
perceived security of bricks-and-mortar should help to underpin property values
mortgage debt is likely to remain cheaper for longer, while prime property presents relatively good value in a global and historical context (in medium-term)
they expect a clearer picture on the long-term impact on buyer during the Autumn
expect 5-year prime regional market outlook to remain similar to their November 2019 forecast (at 15.9% but with a different growth distribution)
Read more about Savills latest update here.
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