Beauchamp Estates says that London’s 60-90% drop in residential property sales over the first six months of 2020 is part of three distinct phases in response to the coronavirus lockdown.

The company stated: “There are likely to be three distinct phases to the current coronavirus (COVID-19) situation in terms of how it affects the Prime London residential property market, with each phase in the cycle having an impact on household and consumer behaviour, spending priorities and the property market.

“All three phases in the cycle are likely to unfold between April 2020 and March 2021 – a period of 12 months. London is currently in the first phase of the Coronavirus cycle which is likely to go on for at least two to three months (April and May, and possibly, June 2020).

“The second phase in the cycle, lasting some months, will be when people have taken a virus-antibody test and, if some level of immunity is proven, are able to return to things such as office work. This phased return to work, which China is now starting, will help assist the economy and property market, even if bars, restaurants and clubs remain closed.”

The third phase is a lifting of quarantine measures and a gradual return to business activities. The firm forecasts that this third phase in the cycle could happen between October 2020 and March 2021.