Professionals could Zoom into meetings from anywhere in the world, in theory, but the benefits of being able to commute to the office when needed, and the benefits of face-to-face meetings with colleagues, will support demand for homes in well-connected locations.
As lockdown eases and shops, restaurants, and bars reopen, their employees will return demanding conveniently located, affordably priced homes to rent.
Thus we expect rental values will make up much of the ground they have lost in 2020 over the course of the next couple of years.
Once the excitement of the stamp duty holiday passes, we expect to see a return to housing market fundamentals. Growth will be faster in the North and Midlands, where homes are more affordable.
In London, demand for prime central London properties (which look a ‘buy’ after price falls in excess of 20 per cent over the past five years) will drive price growth as international travel resumes, while growth will be more limited in outer London and the wider South East where affordability is most stretched.
Lawrence Bowles is a director in the residential research team at Savills
