With UK Coronavirus cases now over 1.6m, and most of the population continuing to work from home, there is no question that the Coronavirus pandemic has impacted every industry, as well our personal and professional lives.
As we experience a second lockdown and approach Christmas and the end of 2020, we can look back over the last year and consider what impacts the pandemic has had on the London property market.
Here at Hunter Finance, we understand how daunting a future of uncertainty can be, and we are here to help.
We unpick the effects of Coronavirus on the property market, to give insights to investors and property developers.
If you are considering property development finance, call us today to speak to a private lender.
Coronavirus and the London property scene
Earlier this year, strict lockdown and social distancing measures meant that life had to completely change.
Although some investors have expressed concerns that the virus could spark the beginning of a global recession, Hunter Finance has an alternative take.
Though COVID-19 has come with its fair share of restrictions, this has encouraged estate agents to rethink their marketing and selling approach.
Most initial viewings are now conducted virtually, allowing for a more convenient property search.
Need an estate agent? Read more.
While the property prices fell nearly 2% in May 2020, the first lockdown caused many residents to reconsider their living situation. Read the full article here.
With restricted opportunities for exercise and many having to stay at home to work, many decided to bring their property search forward.
- Redundancy or furlough forcing people to downsize
- People want to upsize to have more space to work from home
- They want more outside or garden space
- They no longer need to be as close to their place of work
- People want a village-like suburban feel
- They are reassessing their work-life balance
As summer approached and lockdown restrictions eased, estate agents saw property purchases and rental deals hit a record high.
Though we have seen a slight drop this year, some project that over the next 5 years, property prices will rise again, seeing an increase of up to 20%.
This is good news for property developers
With the prices currently at a lower rate, and a projected rise in prices once again, property developers may want to maximise the profitability of their projects.
As people move away from the city to have more space, buying a plot of land in the suburbs or the commuter belts of cities will mean that property developers can take advantage of the changing market.
See how we have helped hundreds of property developers get their project underway here.
Learn more about why the suburbs are becoming more popular here.
Here are some tips for property developers to maximise the profitability of their development project:
- Make a robust building and business plan
- Location is key
- Search for realistic and reasonable prices
- Monitor the property market
- Keep your target buyer in mind
Hunter Finance are here to help
For over 10 years we have been providing property finance to new and experienced property developers to help them kickstart their dream projects.
Call us today to see how we can help.
Take a look at some properties we have financed: