The full survey findings can be accessed via: www.propertypal.com/covid19survey
· Of those who planned to buy a house before Covid-19, 1 in 5 no longer plan on doing so.
· Of those who did not plan on buying a house before Covid-19, 1 in 4 now do plan on doing so.
· 54% of people think house prices will fall by 1-10% over the coming 12 months. 14% of people think there will be no change in prices and 3% think prices will rise by 1-10%.
· 22% of First Time Buyers and 14% of Home-Movers are looking at more affordable properties compared to 8% and 10% respectively looking at more expensive properties.
· 53% of First Time Buyers say their deposit has not been impacted by Covid-19, whilst 15% say it has increased and 15% say it has decreased.
· 30% of First Time Buyers intend to purchase a property in Belfast compared to only 20% of Home-Movers.
· 3 in 4 First Time Buyers intend to purchase a Detached or Semi-detached property and only 8% intend to purchase an Apartment or Terrace property.
Jordan Buchanan, Chief Economist at PropertyPal commented on the survey findings:
Covid-19 has had a profound and immediate impact on the Northern Ireland economy and housing market. This is reflected in our survey evidence which highlights one in five people no longer plan on buying a property because of Covid-19. However, whilst ensuring the health of families and loved ones remains the top priority, housing has become increasingly important with many now confined to their homes for longer period of times. The survey clearly highlights how households’ priorities have changed regarding the area and style of home they live in. It has become increasingly important to have a garden or outdoor space as well as being in an area with strong internet connectivity because of the accelerated shift to working from home. In contrast, more traditional drivers of housing demand, such as being close to schools or public transport, are relatively less important.
Jordan further commented on the potential impact on house prices:
‘What happens in the housing market follows a very close pattern with the wider economic climate and it is clear we are in the midst of a deep recession. The early indicators suggest there will be an initial flurry of activity when the market reopens but this should settle quickly. The government’s furlough scheme has been a life raft in preventing mass unemployment and largely protecting incomes and affordability of housing costs. However, the full impact of the new economic reality will come in 3 to 6 months’ time as some furloughed workers will not return to active employment. The risks remain firmly on the downside, suggesting some price falls are inevitable. It is plausible to see reductions in the short term in the region of 5%, provided there is a fast-economic recovery. A weaker economic recovery with higher levels of unemployment would likely result in a greater downward impact on house prices.’
PropertyPal's Jordan Buchanan
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