Since the beginning of the pandemic there has been a distinct air of bargain hunting going around with many aware that the economic situation is somewhat precarious following the government taking historically unprecedented steps to shut down the majority of the country’s economy from March through until June.
Retailers, travel companies, gyms and hospitality businesses have been very keen to encourage their customers back to their businesses and in some cases this has meant some juicy discounts or offers in order to entice them.
Some travel companies were reportedly offering up to 50% off on holidays and flights to bring in the customers, whilst many gyms were offering similar deals and, of course, Rishi Sunak’s ‘eat out to help out’ gave us all access to 50% off meals throughout August, Mon – Wed.
This appears to have filtered out into the wider economy, however, with many now expecting knock down prices wherever they go, many businesses are also complaining that many customers that they won back in August are now nowhere to be seen with prices back to normal. This also seems to be having knock on effects in other areas too.
Low ball house offers
According to the latest research by online estate agent Strike almost half of buyers have been asking for a reduction in price when making offers on homes for sale.
Despite this, an extremely robust market has allowed sellers to come from a place of strength and refuse to budge on asking price, with demand remaining high despite low supply.
It’s shaping up to be very much a seller’s market for some time now, with pent up demand created by lockdown and increased demand through a focus on living space.
As more people have been spending increased time indoors, it has become apparent that space within the home is now at a premium and that many are now more than willing to pay to increase it.
Sam Mitchell, CEO, said “Now that restrictions have been lifted, property demand is booming. Not only was there pent up demand to move after months of being unable to, but the government’s stamp duty holiday being released into a low-interest-rate environment has also worked wonders for the UK property market’s revival.
Over the past few months, we’ve seen at least a 50% increase in demand from buyers now versus before lockdown and we are on average agreeing twice as many sales per week as we were pre-lockdown which is astonishing.”
2021 and beyond
It’s unlikely the conditions which we’re currently under with COVID-19 are going to change significantly any time soon and so this would lead us to believe that the seller’s market will more than likely continue.
There isn’t likely to be a huge influx of property into the supply line in the near future, and so those in the enviable position of having good property at their disposal can afford to sell it at a premium rate or simply hold on to it.
All that being said, things are unlikely to change in the coming months.
