Covid-19 has had a significant impact on the real estate market. Retail and hospitality have been hit particularly hard, including offices around the country shutting as staff worked from home and some industries dying down. In such trying times, effective corporate governance is critical; it provides optimum long-term strategic planning all while properly focusing on improving more urgent matters. Because of the economic turmoil, many residential households avoided paying rent after the government declared that tenants could not be evicted during the UK lockdown. Estate agents, on the other hand, still had obligations to meet. Regardless of the fact that many lenders were able to analyse debt commitments, the results varied from case to case.
In terms of the impact of major events on trade tensions, 63% of respondents were skeptical about the future for the UK real estate sector following the results of the Brexit referendum in 2016. After an unforeseen surge during coronavirus pandemic, Halifax, Britain ’s biggest mortgage lender,anticipated that the economic damage from the pandemic would catch up with the real estate market in 2021. The Treasury’s economic forecaster, the Office for Budget Responsibility, forecasts more than an 8% drop in house prices this year, followed by a rapid turnaround in 2022. The Office of Budget Responsibility also expected a boom in property transactions before the end of the stamp duty holiday in March, as buyers hurry to beat the deadline.
COVID-19 affected the Real Estate Market. Fewer buyers were looking for homes, and fewer sellers were able to list their properties or invite strangers inside their homes during a pandemic due to health concerns and stay-at-home orders. Housing is a lengthy commitment and the largest asset for many households, so even if priorities shift significantly, the present economic instability will keep potential customers on the board for a while. A sustained rise in home prices, compounded with a limited supply of inventory, may make it difficult to act on these potential moves.