Our monthly property market review is intended to provide background to recent developments in the property markets as well as to give an indication of how some key issues could impact in the future.
Overview
FLEXIBLE OFFICE PROVIDERS FIGHT FOR SURVIVAL
Demand for new offices will drop significantly this year due to the COVID-19 pandemic, according to new research.
RETAIL: THE FALLOUT FROM LOCKDOWN
The government’s lockdown measures led to the unprecedented closure of all ‘non-essential retail units’ for 3 weeks. On 16 April, this was extended for at least 3 more weeks.
PREDICTIONS OF A V-SHAPED RECOVERY – BEST-CASE SCENARIO
According to Savills’ latest ‘Market in Minutes’ report on UK commercial property, the average prime yield month-on-month to the end of March was stable. In Q1, investment volume was up 10% year-on-year. However, as deals that completed in March had already been underway for some time, it is expected that UK commercial property investment volumes ‘will now fall to the kind of levels not seen since 2008 in Q2 and Q3.’
MORTGAGE ACTIVITY
- Over 1.2 million mortgage payment holidays have been offered by lenders to customers impacted by COVID-19
- One in nine mortgages in the UK are now subject to a payment holiday
- The number of mortgage payment holidays in place more than tripled in the two weeks to 8 April, growing from 392,130 to 1,240,680, an increase of nearly 850,000 or an average of around 61,000 payment holidays being granted each day.
HOUSE PRICES HEADLINE STATISTICS
- UK house prices increased by 1.1% in the year to February 2020, down from 1.5% in January 2020
- House price growth was strongest in Wales where prices increased by 3.4% over the year to February 2020
- The highest annual growth within the English regions was in London, where average house prices grew by 2.3%