It is, though, an extremely vague term; a simple nod towards an accepted truth that the world as we know it will never return to exactly how it was before we had ever heard of COVID-19. And understanding what the “new normal” will look like – what changes are here to stay and how people’s day-to-day lives will be irrevocably different post-pandemic – is altogether more difficult.
When it comes to the property sector, what can we say about the long-term, lasting effects of the pandemic? Here are four trends that I believe will define the “new normal” for the industry.
Demand for rural properties
In the 12 months since the UK’s first lockdown was introduced, the demands of homebuyers have changed notably. For one, data has shown that property buyers are leaving urban areas in favour of rural dwellings.
This trend has been particularly pronounced in the capital; Londoners bought 73,950 homes outside of the city in 2020, according to Hamptons International. That is the highest figure seen in four years. More generally, during June and July last year, the number of English city residents enquiring about village properties via property portal Rightmove rose by 126% when compared with 2019.
Will this trend continue as lockdown measures are eased? Or will the reopening of pubs, bars, restaurants, shops, theatres, museums and galleries reinstate the allure of urban areas? The coming six months should reveal the answer – but it is a key trend to watch if we are to understand the “new normal”.
Remote working and more space
The purported exodus from towns and cities into the countryside is, of course, linked to the rise of remote working. No longer having to commute to an office on a daily basis, homebuyers have been free to consider new locations.
The rise of remote working has had another knock-on effect: it has meant that many homebuyers are looking for more spacious properties, ideally houses and flats with spare rooms.
This trend took shape early on in the pandemic. In June 2020, estate agent Dexters surveyed buyers to establish their “non-negotiable” demands. The top result was a spare room that they could use as a home office while working remotely, followed by outside space in the form of a garden, roof terrace or balcony.
Again, reopening offices may see homebuyers’ priorities revert to those seen before the pandemic. However, with many organisations saying that employees can still work remotely several days a week if they so choose, the desire for more spacious properties is unlikely to disappear in 2021.
Overseas buyers to face more obstacles
As of April 2021, there will be a new 2% stamp duty surcharge for non-UK residents purchasing UK property. Further to that, the UK’s departure from the EU will almost certainly result in fewer people moving from EU nations to live and work in the UK.
Combined, Brexit and the stamp duty hike may result in declining overseas interest in UK property. So, while not a trend that has been sparked by the pandemic, it is nonetheless an important one to monitor in the months and years to come.
The need for technology will only get stronger
Putting aside the trends that will likely shape buyer demand across the UK property market in 2021, there is one aspect of the “new normal” that is far easier to predict: the integral role of technology in property transactions.
The property industry has often faced criticism for being cautious in its adoption of new technology, instead remaining reliant on offline processes and masses of paperwork. However, the pandemic flipped that on its head.
When the first lockdown started in March 2020, businesses throughout the property sector had to adapt quickly; digital transformation strategies were greatly accelerated, and entirely new practices were adopted almost overnight.
New tech-driven processes have since become common: virtual house viewings, online auctions, e-signatures on documentation, and electronic client onboarding to name but a few. Yet conveyancing is perhaps the most significant area of change.
Conveyancing has historically been blighted by inefficiencies in coordinating activities, providing updates to stakeholders (agents, buyers, sellers, and so forth) and securing all the necessary documentation. However, the pandemic forced firms to change the practices, with digital platforms being used to dramatically streamline and automate much of the conveyancing process.
As lockdown measures ease and offices reopen, do not expect the property industry’s reliance on technology – particularly when it comes to conveyancing – to abate. Better, faster, easier and more compliant ways of completing tasks have been uncovered through digital transformation, and this is undoubtedly one change that is here to stay.
