How do we make sense of the current residential property market with the post-Lockdown mini-boom still continuing in many areas, apart from London, which is clearly being most impacted by the ‘working from home’ and greater living space trends.
We have seen since Spring some of the worst economic data since the 1930’s and yet the appetite from home buyers and investors has resulted in a far more buoyant property market than many experts had previously expected. A combination of very low interest rates, pent-up demand and relatively benign credit conditions have all played a part alongside the SDLT tax concessions.
The continuing appetite to buy confounds logic given the likelihood of the imminent large scale unemployment from November onwards. Renowned economist John Maynard Keynes is credited with the quote that: “The market can stay irrational longer than you can stay solvent.” But for how long is the question, as many with ‘cash to burn’ sit on the sidelines, with the lid on their war chest firmly shut, at least for now.