Just like any other market in the world, the UK housing market has also been affected by the recent Global Pandemic, COVID-19. Whether this change is good or for the worse, only time can tell. But in this brief article, we are going to see some hypothetical effects that this global crisis is potentially going to have on property investors, especially people who are planning on setting foot into the housing market here in the UK.
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With the current social-economic conditions that the world is facing these days, we believe it is safe to say that the world has come to a stop. Although, the casualties are not as enormous as reported in the previous historic pandemics that happened in the 19th century, because of the awareness that people have about this crisis and the societal pressure on saving lives. But the effect that it is having on the global economy suggests that things could go way worse than what they seem to be right now.
Investing In the Housing Market
The same goes for the Housing market. If you see the economic effect that pandemics like Black Death and Cholera had in the 19th century, there was a short-lived reduction in the property prices as well as rents. The same trend can go in this crisis as well. Do you know how to invest in UK property?
This may seem like a good thing at first but then again, it is short-lived. When you look at the long terms effects of this ongoing pandemic, since there is no business going on in this complete lockdown, there is almost zero cash flow in the country. Every single market is dropping their rates, in the hope to give life to their businesses. But the real question is, for how long they would be able to keep that up?
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You can expect the prices to be low in the long term. But when you look at the bigger picture, on what happens when the Virus dies, we are expecting to say a huge increase in the housing prices here in the UK. This is partly due to the fact that there might be new technologies invented in the future that would be installed in the homes to facilitate life at home in case of any future pandemic.
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All this may seem a bit far-fetched, but we were not even prepared for COVID-19 and it has shown us the hard truth that we need to prepare ourselves to deal with such unpredictable problems. The housing market here in UK has to realize that if they want to remain in the real estate business in the long run.
There is still a lot of uncertainty as to where this current global crisis will take us, but as far as the housing market of the UK is concerned, it is going to see a change that is going to be unlike everything that we have ever seen before. The housing prices would decrease but not so much and when this virus dies down, you ca expect the prices to go a lot higher than before.