Property market in Cambridge
In the months prior to the start of the COVID-19 pandemic, property prices in Cambridge were on the up. The uncertainty surrounding Brexit seemed finally to be more or less resolved and confidence was returning to the market.
However, the current lockdown and pandemic has thrown a fresh spanner in the works of the UK property industry. Overnight, viewings were postponed and sales were put on hold. This has led to speculation that a property crash may be on the way.
So, are property prices in Cambridge about to fall? We decided to take a closer look.
Property sales put on ice
Across the UK, property sales were halted almost as soon as lockdown measures were introduced.
While things did start back up again after a few weeks, the industry is still seeing far fewer sales. This is partly because real-life viewings are still not possible in many cases.
Online viewings are just not the same and most buyers prefer to see a property in person before parting with their hard-earned cash.
Job uncertainty
Another reason for the property slowdown is increasing job uncertainty. Almost a quarter of Brits were furloughed during the peak of the crisis and millions of self-employed have also been unable to work.
With the furlough scheme set to end in October at the latest, and thousands of businesses struggling to break even, it’s likely that a lot of people will be made redundant before the year is done.
Those in danger of losing their jobs are very unlikely to consider a move, especially if their industry is unlikely to reopen in the foreseeable future.
Lower interest rates
At the start of the COVID-19 pandemic, the Bank of England slashed interest rates to an all time low in order to try and protect the economy.
These low interest rates should result in cheaper mortgages being available, something that could encourage buyers to take a chance and buy a new home.
Short term
With so much uncertainty surrounding the housing market, a lot of people are opting to sit tight and wait to see what happens over the coming months.
As @MoneyObserver says, “The virus has unleashed a whirlwind of economic and psychological effects that seem inevitably destined to bring down house prices in the near future.”
This means that waiting it out could help to secure you a cheaper property and help you get one foot up on the housing ladder.
In the meantime, you could use a short term rental option like CheckedInn. Moving out of your current house and into more flexible accommodation will help to put you in an even stronger position when the housing market kicks into gear once more.
Find out more about the services and properties we offer and start looking for a new home of your own, by exploring our site today.