Knight Frank has looked into how Covid-19 is accelerating design trends and impacting housing delivery, suggesting some key evolutions for the future of the global prime residence.
Economists warn of a “significant fall” for house prices as wider economic turmoil catches up with the property market.
Savills’ research team has profiled four key London buyer types and how their changing wants and needs are impacting the prime residential markets. Here’s what’s making Upsizers, Extended Commuters, House Swappers, and Super-prime Buyers tick in today’s market.
“This does not feel like a re-run of 2008/09 for the UK property market,” says Knight Frank, as it forecasts minimal property price drops against a complex economic backdrop.
“The ‘once in a lifetime’ re-evaluation of housing requirements on the back of the lockdown will be a counterweight to the impact of the recession on housing market activity over the rest of 2020,” suggests Zoopla.
Property prices are set to fall further this year before recovering by 2-3% in 2021, suggests Dr Howard Archer, Chief Economic Advisor to the EY ITEM Club.
Average UK house prices are likely to drop by anything from 1% to 7% this year, predicts Strutt & Parker – although the short-term impact “could be much gloomier” in some parts of Prime Central London.
Drones, personal flying vehicles and air taxis will require the built environment to change dramatically, writes Paul Cureton – potentially ushering in new styles of building, and leading to more sustainable design…
Lender’s base case scenario now shows a decline of 6% for this year, instead of the 5% being forecast in April.
“The Covid crisis has pushed the property market into a hard reset,” says Jonathan Hopper of Garrington Property Finders. “New commuter hotspots will emerge, where quality of life and broadband speed are as important as the speed of the commute.”
“A full house price crash [is] a distinct possibility,” warns Oxford Economics as it assesses the potential fallout of the Covid-19 pandemic on global markets. But “a much more likely scenario is sideways movement or a modest price correction even in the most overpriced markets.”
Three scenarios for house prices and transactions volumes over the next five years have been presented by the Office for Budget Responsibility – an Upside, a Central, and a Downside.