Two-fifths of Britons would prioritise space for a home office if they were searching for a new property, a survey found today as people look at fresh ways of working since the coronavirus lockdown started.
One in six people said they have become more interested in updating their home since March, while nearly a fifth want to change the style of their home, the poll by the Home Builders Federation found.
House-hunters are now looking at some of the best home office spaces available when looking for a property, with an £850,000 five-bedroom property in Rugby, Warwickshire, among the best on the market.
Others include a £500,000 four-bed home in Burton-on-Trent, Staffordshire, and a £330,000 three-bed house in County Antrim in Northern Ireland which have been marketed with a focus on the home office.
The research by HBF also found nearly a fifth of people want to change the style of their home – ahead of New Homes Week Unlocked between July 20 and 27, which showcases the benefits of new build homes.
This stunning home office in an £850,000 five-bedroom country house in Rugby, Warwickshire, looks out into the garden
A well-presented home office in this five-bedroom property in Ashbourne, Derbyshire, is for sale – price on application
This home office is in a spacious room in a four-bedroom home in Burton-on-Trent, Staffordshire, on sale for £500,000
A double home office is set up in this £330,000 seven-bedroom house located in County Antrim, Northern Ireland
Interest in interior design appears to have particularly increased among Millennials, with nearly a quarter of 25 to 34-year-olds saying they have become more interested in this during the lockdown.
Stewart Baseley, executive chairman at the HBF said: ‘Lockdown has been an extremely testing time, during which people have spent much more time than usual in their homes.
‘This has led to a re-evaluation in how people see their homes and what they want from them.
‘New Homes Week Unlocked will give those who have developed itchy feet an opportunity to update their space according to their new priorities.’
The findings from the survey of 2,000 people across the UK were released as Halifax said that in June, mortgage applications from first-time buyers nearly doubled.
Halifax saw a 96 per cent increase from May as buyers looked to step on to the housing ladder.
Halifax said East Anglia, the North West and the North East in England are proving some of the most popular choices for those looking for a new home after lockdown, with mortgage applications already higher in these regions than levels seen before the pandemic.
A survey from Halifax of more than 3,000 people found that over half of workers who had been working from home now think that there is less need for people to live in a city. Many said that being close to their office is no longer an important factor when purchasing a property.
Online mortgage application inquiries to Bank of Scotland have also jumped by 75 per cent in the past week, as the property market in Scotland started to move again.
Tom Martin, mortgages director at Halifax, said: ‘We’re… beginning to see a clear shift in where people are now looking to buy homes, with the likes of East Anglia and the North West already more popular than before lockdown.
‘This may reflect how people see their lifestyles changing after the pandemic, with greater flexibility to work from home and a desire for more outdoor space.
‘For those with existing mortgages, we’re also seeing more and more people move back to regular payments, which is a positive sign after many took the opportunity for a little breathing space during this uncertain time.’
Alex Rose, director of new homes at Zoopla, said: ‘Home offices have spiked in popularity as more people plan to work from home more frequently, while gardens and proximity to outdoor space have also become a prerequisite for many buyers.
‘Despite the pressures of social distancing, demand from home hunters has been served by best-in-class technology, CGIs and virtual viewings made available by house builders.
‘Buyers have also been able to visit empty show properties, making social distancing easier to navigate, enabling new homes purchases to move forward.’
Where you can grab a bargain on a reduced house in Britain after prices suffered their first annual fall in nearly eight years
House prices are still being reduced across Britain as a leading index revealed they suffered their first annual fall in almost eight years, as the impact of the coronavirus lockdown hit the property market.
Nationwide said that the average UK house price dipped 0.1 per cent on its long-running index in June, the first annual decline since December 2012. Property prices dipped by another £2,500, or 1.4 per cent, over the month, to an average of £216,403, Britain’s biggest mortgage lender said.
However, this was a smaller decline than May’s 1.7 per cent, which was the biggest monthly drop in more than 11 years. The housing market, which ground to a halt after the UK went into lockdown at the end of March, reopened in mid-May, with estate agents allowed to reopen their offices and would-be buyers to view properties.
But the effects of the economic shock are only starting to filter through to prices now.
Among the reductions made during the pandemic period was a seven-bedroom house in Holymoorside, Derbyshire, reduced by £150,000 on May 28 from £1.2million to £1.05million; while a six-bedroom house in Harrogate, North Yorkshire, was reduced by £150,000 on June 11 from £1.75million to £1.6million.
A seven-bedroom house in Holymoorside, Derbyshire – reduced by £150,000 on May 28 from £1.2million to £1.05million
A six-bedroom house in Harrogate, North Yorkshire – reduced by £150,000 on June 11 from £1.75million to £1.6million
Meanwhile an eight-bedroom house in Calne, Wiltshire, went down by £55,000 on June 5 from £950,000 to £895,000, and a five-bedroom semi-detached house in Eccles, Manchester, was reduced by £25,000 on June 9 from £500,000 to £475,000.
Elsewhere a two-bedroom maisonette in Chiswick, West London was reduced by £25,000 from £375,000 to £350,000, and a five-bedroom house in Horncastle, Lincolnshire, went down by £25,000 on June 27 from £350,000 to £325,000.
‘It is unsurprising that annual house price growth has stalled, given the magnitude of the shock to the economy as a result of the pandemic,’ said Nationwide chief economist Robert Gardner.
‘Economic output fell by an unprecedented 25 per cent over the course of March and April – almost four times more than during the entire financial crisis.’
An eight-bedroom house in Calne, Wiltshire – reduced by £55,000 on June 5 from £950,000 to £895,000
A five-bedroom house in Horncastle, Lincolnshire – reduced by £25,000 on June 27 from £350,000 to £325,000
Nationwide said on a seasonally adjusted basis, house prices in June were 3.2 per cent lower than in April.
Lucy Pendleton at estate agents James Pendleton, said it was remarkable that prices had only fallen slightly, given the scale of the economic shock.
‘That kind of resilience would normally be seen as a sign of strength and confidence but we’re going to have to wait for the furlough scheme to end to find out what this market is really made of.’
It comes as the latest mortgage stats from the Bank of England show banks handed out just some 9,300 in May, the lowest number on record and 90 per cent decline compared to February. Transactions were also 50 per cent lower than last year.
A five-bedroom semi-detached house in Eccles, Manchester – reduced by £25,000 on June 9 from £500,000 to £475,000
A two-bedroom maisonette in Chiswick, West London – reduced by £25,000 from £375,000 to £350,000
Some property analysts have argued that it is difficult to give accurate house price readings when the number of mortgages and transactions remains so low.
But Gardner said their ability to generate the house price index had not been impacted, as the ‘sample sizes have remained sufficiently large and representative to generate robust results’.
He also said that a further easing of lockdown measures in the coming weeks was likely to lead to a slight pick-up in activity in the short-term, although the medium-term outlook remained ‘highly uncertain’.
‘Much will depend on the performance of the wider economy, which will in turn be determined by how the pandemic and restrictions on activity evolve including any behavioural shifts,’ he added.
‘The raft of policies adopted to support the economy, including to protect businesses and jobs, to support peoples’ incomes and keep borrowing costs down, should set the stage for a rebound once the shock passes, and help limit long-term damage to the economy,’ he added.
But Anthony Codling chief executive of property platform Twindig, says we have not dodged a bulled, pointing to the gap between mortgage approvals and house prices (see table below).
He said: ‘With mortgage approvals down 86 per cent year-on-year in May, there are more downside risks to future house prices than upside risks in my view.’
UK house prices fell for the first time since December 2012 last month
The North West saw the strongest growth at 4.8% and the North the lowest, with prices flat
Anthony Codling chief executive of property platform Twindig, says we have not dodged a bulled, pointing to the gap between mortgage approvals and house prices
Nationwide said all UK regions saw modest annual price growth in the three months to June
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says that despite June’s flat prices, activity had started to pick up since the reopening of the market.
He said: ‘After recording its largest monthly fall for more than 11 years in the last survey, the widely-respected Nationwide house price index shows continuing flat picture in June. We have seen a similar situation emerge on the ground, at least as far as prices are concerned, but not with activity.
‘Prices are being kept in check by affordability issues and more supply gradually becoming available. But demand is picking up as some buyers emerge from enforced confinement in unsuitable property and or relationships to take advantage of continuing low interest rates, while sellers are more realistic.’
Nationwide said all UK regions saw modest annual price growth in the three months to June, with the North West seeing the strongest growth a 4.8 per cent and the North the lowest, with prices flat compared the same quarter last year.
In London, house prices rose by an annual 2.1 per cent over the second quarter and average prices in the capital were just 3 per cent below all-time highs struck in early 2017.
