The real estate sector here in the UK has received a massive blow which was predicted especially after the nationwide lockdown came into force due to the pandemic COVID – 19.
However, the real estate sector of the UK is slowly showing signs of recovery as per the research conducted by a renowned real estate agent associated with https://wirral.co.uk
On that note, real estate investors and homebuyers need to be aware of the factors that affect the housing market directly.
Well, in this way, interested parties will be able to gauge the perfect time when they should go ahead and commit to the decision of buying a home.
With that stated, it is time to take a closer look into some of the aspects that affect the housing market directly.
When the economy of a nation like the UK grows without a hiccup, employment rates will be up and people will have money to buy a home.
On the flip side, unforeseen circumstances such as a market crash or a pandemic will follow recession and loss of public wealth. In such conditions, without support from lending institutions or the government, fragile sectors like the real estate market will collapse.
Fortunately, in this pandemic situation, the real estate sector of the UK is still up on its feet thanks to low interest rates currently offered by renowned financial institutions like the Bank of England.
The overall success rate of a nation’s housing sector also depends on the geographical locations of the properties available to the masses.For instance, after the pandemic COVID – 19 showed up at the UK’s doorstep, among other sectors, the average demand for real estate properties in important locations like London, Oxford etc. witnessed a steep fall as people wanted to move away from congested areas.
On the other hand, the demand for properties in locations like the Wirral peninsula or the countryside of Birmingham witnessed an exponential rise.This is one of the many factors why even amidst the current lockdown phase; the real estate sector of the UK is still up on its feet!
Easy availability of mortgage and low interest rates
When banks offer low interest rates against mortgage and related financial products, people finally muster up the courage to borrow more money so that they can finally purchase their dream property.
This situation, further down the line, drives the demand for housing.On the flipside, no thanks to the credit crunch that befell the UK’s population way back in 2007, lending institutions reformed their conditions when it came to mortgages by increasing the deposit amount and the interest rates.
In this way, the years that followed in 2007 witnessed a sharp drop in demand for real estate properties.This situation is changing again as currently; the mortgage rates are at an all-time low and there are plenty of lending products currently on offer from all major lending institutions.
Apart from the factors mentioned above, the housing market of a nation like the UK also depends on whether or not the properties up for sale are affordable.In case sellers want to increase the demand for their properties, especially in times like the current situation, they would need to keep the asking price attractive as people have less money to spare at this moment.