To make a prediction of the future of property prices in the UK once lockdown ends, let’s take a look at what happened in New Zealand after their lockdown measures were loosened. We look at New Zealand because its property market is very similar to Britain’s, and unlike Britain, they are already coming out of lockdown. One point to keep in mind though is that New Zealand was not nearly hit as hard by the Coronavirus as the UK was.
First, there are some positive signs. Many New Zealanders have been window shopping for properties while they were in lockdown and were ready to make offers. This pent-up activity means that there could be a surge of demand for properties, prompting sellers to get ready to sell. One agent sold two properties to cash buyers on the second day after lockdown measures were lifted.
Since sellers were bringing more homes onto the market, there will be many suitable properties to choose from, and with so much choice and supply, prices should be lower. Sellers have been slashing their listing prices by up to 10%, trying to take advantage of the increased activity on the market.
If these examples from New Zealand are anything to go by, it is indeed looking like a very good time to invest in property. With low mortgage rates, low prices and loads of choice!