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CORONAVIRUS UPDATE

See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 274,762 | UK Deaths: 38,489 SEE MAP Italy Confirmed cases: 232,997 | Italy Deaths: 33,415 | Italy Recovered: 157,507 SEE MAP Spain Confirmed cases: 239,479 | Spain Deaths: 27,127 | Spain Recovered: 150,376 SEE MAP See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 274,762 | UK Deaths: 38,489 SEE MAP Italy Confirmed cases: 232,997 | Italy Deaths: 33,415 | Italy Recovered: 157,507 SEE MAP Spain Confirmed cases: 239,479 | Spain Deaths: 27,127 | Spain Recovered: 150,376 SEE MAP

TODAY'S OTHER NEWS

Economic impact of Covid-19 could ‘trigger big price reductions’

Many landlords and letting agents are increasingly concerned about the economic impact of the coronavirus pandemic on their tenants and property portfolio, but with the property market reopening for business, are their potential ‘bargains’ to be had for those currently thinking of expanding their property portfolios. 

Mortgages for Business has identified vanilla BTL properties and HMOs as good property investment options at the moment, while other firms advise BTL landlords to adopt a region-specific investment strategy. 

“The huge economic shock delivered by the Covid crisis could trigger big price reductions, and this is likely to pique the interest of strategic buyers who sense there are bargains to be had in Scotland,” said Edwina de Klee, partner at the Edinburgh-based buying agents Garrington Property Finders. 

The Scottish government yesterday published its plans for the easing of lockdown restrictions, including the move towards reopening the housing market.

It has set out the five key phases of transition, with movement into the first phase set to occur following the 28 May end-of-cycle review of Covid-19 regulations.

The following review cycle will end on 18 June.

de Klee commented: “A week after England’s estate agents reopened for business, the Scottish Government has made clear it won’t fire the starting gun for Scotland’s property industry for another four weeks.

“Clearly this will be a source of frustration for Scotland’s property sector. When they do eventually lift the shutters, Scottish estate agents will face two key questions – how will socially distant viewings work, and what kind of property market will they find?

“The experience of agents south of the border will help answer the first one. Would-be buyers in Scotland are likely to be vetted carefully and offered virtual, online viewings of a property before being invited to view it in person.

“The impact of the pandemic on prices, and people’s willingness to move, is harder to predict.

“For now the lockdown has cryogenically frozen much of Scotland’s property sector, but there are signs that many prospective buyers have been using their confinement to window shop.

“Few things are more likely to make people want to move than being cooped up in the same four walls for weeks on end, and property portals have seen traffic increase by up to a fifth. Not all of this buyer interest can be dismissed as mere lockdown escapism.”

Poll: Do you think that those who invest in bricks and mortar now will see long-term capital growth?

PLACE YOUR VOTE BELOW

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    I read this the other day.. Tell us something new!!

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    Wish my crystal ball worked as well. Let's talk it down shall we?
    Any dip in my opinion will be very short lived.

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    I think there will be bargains to be had towards the end of this year, but long term capital values will increase as they always do

  • Matthew Payne

    I agree, I think there will be some opportunties but not for a few months yet before we reach the bottom of any temporary dip. However, those looking for them should not focus too much on when that will be. In my experience as a former agent, when the market turns it happens in the blink of an eye, the pace of the return is far faster than purchasing capabilities allow, end users all come out of the woodwork accelerating that pace, and before you know it in a matter of a few short weeks the dip is a distant memory and those who tried to time it to perfection end up kicking themselves for not doing it far sooner.

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    I am amused by the idea suggested of having an honest conservation with your tenant, it takes 2 to have a conservation so when the tenant decides not to communicate end of that.
    The damage was done when we were interfered with / 3 months holiday, when they get 3 months free rent the disease sets-in, just like the Benefit System if they go on it never wants to give it up.
    The Tenants will play around for extra months after the 3 months holiday is up knowing we can do nothing, then probably move on if we are lucky to another misfortunate LL who has also being caught for rent but he will take them because he is a desperate situation.

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