COVID-19 had a big impact on real estate. It’s been a turbulent time really. During the lockdowns people had different priorities when looking for property. We were very fortunate during lockdown. Our house is quite big, and we have a large garden, so my boys could spend plenty of time outdoors. We bought a massive trampoline so they could burn off some energy. I was relieved we weren’t all crammed in together, we could spread out and have our own much needed space.

But I can totally understand why so many were quick to use a mortgage estimator to figure out how much they could spend on their next property. Desperate to change their circumstances and have a garden and an office space. Just to make the lockdowns more comfortable and manageable. We would have been exactly the same if our house hadn’t already ticked those boxes.

Outdoor Space

I guess it was only natural many wanted more outdoor space. Keen to leave the cities behind and live more rurally with access to their own garden. Otherwise at the time people were limited to just being outdoors once a day for exercise (running, cycling or walking a dog). During that once a day outing you even had to keep moving, if you sat down together it was frowned upon.

Whereas there was no limit to the amount of time spent in your own private garden. Those with access to their own garden actually had better mental health during the lockdowns. It’s no wonder really as they could enjoy the freedom and fresh air a garden afforded, without strict restrictions on sitting outside.

Office Space

With the increase of home based working to keep people from mixing in offices, having a spare room to convert into an office also became more of a priority. Desk space for children was important too, as most were being taught remotely throughout the lockdowns. Many parents wanted the space to create an ideal homeschooling environment for them.

Bigger House

It wasn’t just about having extra space for an office, a bigger house as a whole was a priority for those who could afford it. It was a difficult time for anyone living in flats, some felt trapped during the lockdowns. There was little room for children to play, you would all be under each other’s feet.

After the lockdowns ended COVID-19 still had a lasting impact on real estate.

Office Attendance Down

There are more empty office spaces as people have adapted to the change of working from home. Apparently, office attendance is down 30%, which is a considerable amount. Any office properties no longer needed will no doubt be repurposed or removed. Not all business owners are staying on the side of caution of keeping their office space just in case anymore. Many are letting their leases expire.

Changes To How We Shop

Walk along any high street and you will also see more empty retail spaces because peoples shopping habits changed during the COVID-19 lockdowns. Many of us had no choice but to make online purchases instead, but now still continue to do so.

Out-migration

Out-migration of urban areas has slowed. However, it has not returned to the levels seen prior to COVID-19. People are still preferring to live on the outskirts of cities. Most of those who left during the lockdowns have not chosen to return, they prefer the better neighbourhoods and greener spaces leaving any city affords.

These three issues have meant a decline in demand for property in the biggest cities. A decline in demand will mean a surplus of properties in urban areas, which will help bring down the cost.

These issues seem to be the new normal in real estate in 2023. However, that’s not to say things won’t change again in the future.

Affordability

COVID-19 had a significant impact on the UK economy. Therefore, given the cost of living crisis affordability will be vitally important. So even if you have priorities about what you’re looking for in a property, you might have to start to make more compromises. It will all be about affordability instead.