How coronavirus shapes the UK housing market — Abodda, the first international property marketplace
Since the coronavirus outbreak, the housing market in the UK has taken a serious hit. Prices have fallen drastically, and this period’s uncertainty is of no help to the desired real estate re-bouncing. Private renting follows the same curve, while the bank of England is trying to pass alleviating measures to help reopen the market. During these uncertain times, new market demands are being shaped, which pave the road for more bespoke housing search solutions. Abodda is a newly emerging online property aggregator, whose innovative features promise the reshaping of the current online housing marketplace both nationally and internationally.
Coronavirus and the UK housing market
The housing market used to contribute greatly to the UK’s financial growth. But after the coronavirus outbreak, the market has lost its momentum. At the same time, many people have lost their jobs and individual incomes have been reduced a lot, making it impossible for future homeowners to pursue a new property any time soon. How will the real estate market be shaped in the next months?
The complete lockdown imposed in England has frozen transactions and movement in the housing market, one thing that has alarmed many government officials. According to Zoopla, there were 373,000 property transactions on hold across the UK with a total value of 82bn. At the same time, it is estimated that more than 450,000 buyers and renters have been unable to move since March because of the pandemic.
The government’s decision to reopen the market for viewings earlier in May will definitely help the commercial life. But while these measures will facilitate transactions that are already on the pipeline, most people will remain cautious about the option of buying or renting a new house.
Private renting in the UK
Private renting has doubled along the past 20 years in the UK with young adults aged 16–24 being the biggest representative demographic. At the same time, the drastic increase in property prices has made it even more difficult for young individuals to afford a house. In fact, homeownership for those under 35 has fallen from 64% to 27% in only two decades.
However, even for private renting, there is big inequality in England. Certain postcodes in London and the East side of the country constitute the most expensive renting areas, which renders more than two-thirds of the country’s rental market unaffordable for young renters until the present day. And although the option for shared ownership is getting increased popularity in the UK, its price still takes up to almost 70% of individual incomes.
After the coronavirus outbreak, the property market took a serious hit and the Centre for Economics and Business Research predicted a 13% fall on prices for 2020 due to lack of transactions, high uncertainty, and the income decrease. Still, it’s too early to say how the prices are going to be affected by this crisis. The only certain thing is that lockdown has changed the way buyers are thinking. Maybe a garden or a balcony will be higher on-demand, or commercial buildings will need to be transformed into residential apartments due to a work-from-home shift.
New property market opportunities — Abodda
With this new state of events, the bank of England may need to impose lower interest rates to kickstart the market. But with unemployment being high the return to the previous normality will be slow. The market is at a crucial turning point. However, new demands give rise to new business opportunities that can tackle the newly emerged market problems. And this is where Abodda comes in.
Currently, there are various sites to help you find the best home for you. The BBC has released a “Where can I afford to live” calculator, which gathers pricing and rental data from Hometrack property analysts, the Bank of England, as well as the Land Registry and Registers of Scotland plus Red Book mortgage evaluations. Additionally, online marketplaces allow you to search for available properties for sale or rent throughout the UK, like Rightmove, Zoopla, On the Market, etc.
First time buyers and renters are expected to be hit harder by this pandemic in their search for a house. And for this reason, new solutions must be implemented that can connect real estate veterans with not-so-experienced future property owners. The Abodda team can give you exactly that.
Abodda is a newly emerging online property marketplace, entering the UK market first, with the goal of becoming the best and first aggregator of the international and national property marketplace. Having attracted a wide range of investors, real estate agents, and lenders, Abodda is shaping a promising future for the housing UK market.
Its design and strong brand identity accompanied by cutting-edge technology are focusing on connecting buyers and renters with commercial, residential, student properties, new homes, and many more in an interactive platform. Users will be able to be part of an engaging community where members post Q&As and have access to exclusive guides and how-tos written by other users.
Moreover, its extremely analytical tools will allow users to search for their ideal property and their ideal location in terms of available facilities in the area such as supermarkets, and schools, while its reviews and market information will make Abodda the best choice for a first-year buyer to a real estate investor.
Abodda will be available for the UK market by the end of 2021. So take advantage of these fluctuating times to wage the market curve, and by the time the market re-bounces you will have the best go-to online marketplace for your every need.