English Housing Market Opens For Business, But How Will It Change Post COVID-19?
One of the questions occupying the minds of those in the housing sector will be the extent to which the release of pent-up demand following the partial easing of the lockdown restrictions will repair the financial damage caused by the pandemic.
Earlier this month, before the changes to lockdown were announced, Knight Frank, the estate agent, predicted the number of home sales in the UK in 2020 would decline by 526,000, a fall of 38% on 2019 transaction levels. It said this decrease in activity would inevitably exacerbate problems across the economy.
Simon Gammon, its managing partner, said: “We estimate there will be a loss of £7.9 billion in DIY and renovation spend and £395 million on paying removals companies.
“This drop in economic activity will have a huge impact on the exchequer with the loss of £4.4 billion in stamp duty accompanied by a decline of at least £1.6 billion in VAT, and significant declines in personal and business tax revenue.”