Housing market after Covid-19 lockdown: buyer demand surges for homes with office space, gardens, balconies and near local parks

Top of the wish list now for buyers and renters are houses with garden space.
Daniel Lynch
Kristy Gray11 June 2020

Before the coronavirus lockdown, serious kerb appeal and a kitchen island were key factors in how quickly a home would sell. Now, as potential buyers return to the reopened property market, the new must-have feature is more space – whether inside, outdoors or both.

Across the industry, a surge in demand is being reported for homes with office space and also for property close to parks, or with a private garden or balcony.

Top of the wish list now for London buyers and renters are houses with two or three bedrooms, according to a survey by property portal Rightmove. And more than half of those surveyed confirmed lockdown has influenced what they are looking for in their next home.

London estate agent Dexters also ranked buyers’ “non-negotiable” demands and uncovered a major shift away from “vanity features”, such as external appearance or the size of the kitchen.

A dedicated extra room for home working tops the list, with outside space in the form of garden, roof terrace or balcony in second place, followed by proximity to a park or cycle routes.

Findings from a report released today by the Royal Institution of Chartered Surveyors (Rics) confirm the shift in priorities.

Based on speaking to buyers, more than four fifths of the property professionals surveyed across the UK (81 per cent) believe there will be an increased desire for homes with gardens or balconies.

Nearly three-quarters (74 per cent) predict an increase in demand for homes near green spaces including parks, and just over two thirds (68 per cent) think properties with more private space and fewer communal areas will be more desirable.

At the other end of the spectrum, 78 per cent think there will be a fall in the appeal of tower blocks and 58 per cent believe homes in very built-up urban areas will be less appealing.

The majority expect no change in the desirability of homes near transport hubs, such as train stations and bus stops.

Simon Rubinsohn, Rics chief economist, said: “There are already signs that those looking to buy a house are responding to the conditions created by the pandemic by seeking out properties with gardens or balconies and nearer green space.

“These and other similar features are likely to increasingly command a premium over higher-density urban locations, according to respondents to the survey.”

What is the forecast for house prices?

The Rics survey for May also found that just five per cent of surveyors reported buyer enquiries falling rather than increasing. This was an improvement on April, when, in a record low, 94 per cent of surveyors reported buyer enquiries dropping off.

House prices sank deeper into negative territory in May, with nearly a third (32 per cent) of surveyors reporting prices decreasing rather than increasing over the previous three months. It was the weakest reading on this measure going back to 2010.

Mr Rubinsohn added: “Following the reopening of the housing market in England, pre-Covid sales that were in the pipeline are now largely going through.

“This is encouraging but it remains to be seen how sustained this improvement will prove.

“Much will inevitably depend on the macro environment and, in particular, the resilience of the jobs market as the furlough scheme unwinds. For the time being, respondents to the survey see the trend in transactions being broadly flat.”

Additional reporting by Press Association

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in