Will COVID-19 cause the housing market to 'crash' ?

[Ripleylady]

I don't pretend to know a thing about house price forecasts, so I would love to see wider opinions about the impact that the virus outbreak will have on the economy and housing market in the UK.

Do you think that covid will be the cause of a housing crash/steep fall in prices?

What is everyone's opinions on buying and selling in the next 12+ months? (obviously, only when viewing properties etc is safe and allowed once again)

That's your opinion and you are entitled to it

If WFH becomes extant, there could be a rebalancing of some areas prices, maybe ?

@DGRossetti

I think some companies will re-evaluate their need for a physical space. Maybe more ‘renting’ of premium locations on different, shorter term contracts.

I think some companies will re-evaluate their need for a physical space. Maybe more ‘renting’ of premium locations on different, shorter term contracts.

WFH could cut the wage bill by 20% overnight. Add that to not needing swanky plush offices, and some firms could experience a renaissance (to balance those that die).

Not needing to be commutable - almost overnight - could see some areas that were overlooked in demand (with the associated price rises ...) whereas areas that were pricey solely because of their commuting aspects might lose.

Although if there is a deflationary move on wages (because WFH is cheaper) it could also cause house price deflation for a while.

Notice all the points in that future where there will be opposition from people whose vested interests are damaged ...

What might be the killer punch is what - if anything - happens to schools and schooling. A move away from the importance of a physical school could really cause a housing market correction.

Again, I would note there will be people who will be very much not wanting that to happen.

Lots of posters saying what 'will' happen with some certainty.

Ignore everyone - because no one actually knows considering this has never happened before.

Personally I think there will be a hefty drop in prices due to overall less demand - suppose we'll all find out in the coming months.

I know one thing for certain - if I'd recently made an offer i'd be pulling out right now and waiting instead.

Ignore everyone - because no one actually knows considering this has never happened before.

But there are parallels from various times in history ... doesn't do any harm to look for clues.

Personally I think there will be a hefty drop in prices due to overall less demand - suppose we'll all find out in the coming months.

I don't think the deaths from C-19 will have any significant effect on the demand for houses. Although it does raise the interesting question as to how many people would have to die until it did ?

The last pandemic which really hammered property prices was the Black Death. Which left whole villages abandoned. Even at the height of Spanish Flu, house prices weren't affected (and in the UK there was a massive 3,000,000+ house building programme in the 20s and 30s anyway ....)

Having recently bought at the top end price I'm dreading this. This was supposed to be our 5 year house before we moved to the seaside. Won't be happening if we end up in negative equity.

I reckon landlords will snap up any housing as it comes in the market. There may be some reduction but as always it will be different in different parts of the country, some may even experience an increase as people’s priorities change.

I reckon landlords will snap up any housing as it comes in the market.

With what ?

Won't be happening if we end up in negative equity.

Negative equity only exists when you view your home as an investment. There are countries (and languages) in the world where the concept is unknown at large.

@DGRossetti in a way we did as we hoped to make enough to buy somewhere much bigger at the coast. Thought the area was a safe investment. We will see!

Negative equity only exists when you view your home as an investment.

It also exists when you need to remortgage and are planning on using equity you put in to buy another home.

However, I agree with you on the landlord thing. Landlords need high deposits.

Yes

I remember the people who bought with very low deposits just before the last crash. I did really feel sorry for them. Really did.

Negative equity most certainly does exist, happened to me in the late eighties, I had to save to pay the bank back the difference between my mortgage and the value of my house before I could purchase the next one. If I had not been able to save the difference I would have been trapped in that house until the market recovered and it took literally years for my first house to reach the price that I had originally bought it for. Being trapped in a house with negative equity is soul destroying, particularly when you want or need to move and also seeing much bigger and better houses come onto the market for the same price you paid for the shoe box you bought before the market crashed was a really bitter pill to swallow.