Over the past years, the UK has been experiencing a housing shortage, the main reason being that private investors no longer take part in acti9ve construction projects. Due to that, real estate costs of buying, selling, and renting property are becoming higher than average; this was not a serious problem earlier; however, it became worse in early 2020 when the Covid-19 pandemic led to people stopping to work on constructing and managing property. Most people shut down their investments and businesses; however, the Marylebone Estate Agents help investors find better opportunities in the market for people who want to buy, sell or rent a property. This article explains what is happening in Marylebone Real Estate as a result of Covid-19:
Rising prices
The 2007 global financial crisis led to housing prices declining in the UK until 2013 where they started recovering as per Statista. From then to 2019, prices were relatively lower due to the slow growth rate; however, the Covid-19 pandemic led to real estate prices hiking and rising massively because most construction projects stopped due to the pandemic leading to house shortages while the demand gets higher. Currently, most people live with the fear of paying too much within a shorter period. For instance, in 2020, housing prices went high at a very high rate of 7.5%, which is considered the highest growth rate for the past six years in UK history.
Low housing demand
Despite there being house shortages in the UK, The demand has reduced due to the high real estate prices and other commercial property. This means that many people are willing to buy housing and real estate property, but the prices are way too high for them to afford houses. Most people lost jobs, and others shut their businesses due to the Covid-19 pandemic, and therefore, they could not afford the mortgage.
The pandemic installed fear to people in most things; not only are they not able to afford a mortgage, but they also fear many other things to happen as they are not at work or not running businesses. Others fear depleting their savings and maybe later lack a way to survive; some can’t afford their dream locations. Others fear prices reduce immediately after they buy property. While some people are afraid that they might lose their jobs and not pay their mortgage, fear high maintenance costs and the last group can’t afford to save for deposits.
People need houses, but they can’t buy them, the trend has been experienced in London where the price of buying or renting is high, but the demand is deficient. Experts in this industry are now crying to the financial regulators to help save real estate.
Conclusion
Real estate prices are likely to stabilize after Covid-19; the current situation shows that the market will remain flat in 2021 due to the effects of the pandemic. However, if you want to buy or sell the real estate property in Marylebone, contact the Marylebone Estate Agents to help you.