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Corona Effect on House Prices in Birmingham

Corona Effect on House Prices in Birmingham

We found this article on the BBC about the effect on rental prices because lockdown has meant more people have ran into relationship problems. The full article can be founds here: 

Here are some snippets:

Lockdown break-ups, job losses and urgent relocations are thought to have led to a surge in the rental sector.

Demand for lettings in Great Britain is up by 22% compared to last year, according to property giant Rightmove.

Experts say the lifting of lockdown restrictions has released “two months of pent-up tension” in the market.

The supply of new rents is not keeping up with demand, however, prompting fears the surge will push up costs and leave some struggling to find homes.

According to data provided by Rightmove, demand for all kinds of property plunged during the height of the lockdown.

The restrictions prevented house viewings, surveys and searches from taking place, while removal companies were also temporarily closed.

People were urged to stay in their current homes during lockdown unless absolutely necessary. Evictions were put on hold until 25 June.

Since estate agents were allowed to reopen on 13 May though, demand for rental homes has increased at a quicker rate than the sales market, according to Rightmove.

Many people have been left with an “immediate housing need” as a result of the pandemic, housing expert Miles Shipside said.


Corona Effect on House Prices in Birmingham
Corona Effect on House Prices in Birmingham

The Corona Effect on House Prices in Birmingham will mean more rentals in the short term, however in the next few months we can expect more and more sales coming to the market as couples will need to sell family homes or to downsize.

The article continues:

However, supply is struggling to match demand.

The number of new rental listings on Rightmove is 4% below 2019 levels. It dropped to a level of 64% below during the week of 6 April.

Landlords are “exiting the market” Mr Shipside says, due to Covid-19 and the uncertainty over tenants being able to afford rent.

Thinktank the Resolution Foundation found one in eight renters were struggling with housing costs as a result of coronavirus.

“They [landlords] are going to pick those with the best references and who can move in immediately. Those whose credit record is not the best tend to lose out,” Mr Shipside said.

More people bidding for fewer properties was almost certain to push up the prices of rented accommodation, he said.

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