The outbreak of Coronavirus (COVID-19) has seen to a vastly uncertain prospect for investors, homeowners and renters alike. As the pandemic continues to take storm and fatality figures continue to rise, the government have been under overwhelming pressure to act fast. The current strategies that have been advised to the public is to adopt “social distancing” and to work from home, with the exception of ‘key workers’.
Now, in a time of national crisis such as this, each and every business sector is to be directly impacted leaving no prisoners, which of course, includes the housing market which is fundamental to the UK economy. The specific markets that are set to face the most fallback from this pandemic are the London housing market and new-build developments.
The reason for the London housing crisis is simply due to the virus manifesting itself in the capital city to the point of discussions over a complete lockdown of London. However, Downing Street have categorically ruled out any prospect of this happening and continues to advise the country to adopt the strategy of social distancing.
However, as a result of the widespread confinement of workers throughout every industry, developers have been dealt with the growing likelihood of uncompleted developments as construction across the UK comes to a halt. It’s important to note that the housing market is comparatively the more stable and secure market for investors to not only protect their savings, but to also maintain their incomings while the uncertainty of job losses continue to rise.
“While construction order books have begun to recover in the opening part of 2020, the fly in the ointment is the uncertain impact of the coronavirus outbreak on UK economic growth prospects,” said Tim Moore, Economics Director at IHS Markit. “A renewed slowdown could see domestic investment spending put back on hold and dampen the outlook for the UK construction sector.”
This has led to a change in demand from property investors, who are shifting their interest towards completed property developments to which there is considerably less risk to their investment. As mentioned above, workers in all industries are set with the possibility of redundancies and insolvencies due to the current economic climate. This is despite the promised injection of £330billion in loans from the government to small and medium businesses to stay afloat as we snowball into the worser stages of the pandemic.
For many investors, these assurances simply aren’t enough while the country stands together in a state of uncertainty. Which is why more and more are turning to completed property developments further afield from the South for additional income as they prepare to weather the storm ahead. In the days and weeks gone by, some of the properties on our listings have become more fought for than ever before. Our specialist team at Elavace have been swept away with enquiries regarding the completed development on our listings, Wishing Well.
To enquire on completed property with Elavace that pays a regular rental income, call us on 0151 808 1042.