Coronavirus may have huge impact on property markets

6/11/2020 3:38:00 AM

Coronavirus may have huge impact on property markets

Coronavirus may have huge impact on property markets

As Covid-19 has hit economies, it may have a lasting impact on property sectors around the world.

The economic uncertainly coronavirus has caused is putting people off buying a new home In the UK, the Nationwide house price index for May showed that prices fell 1.Are you an undergraduate whose chosen career is in jeopardy in a post-coronavirus world - or do you have concerns that the profession you’re working towards is now potentially more risky? We’re keen to talk to those about to graduate – or who have just applied to start courses – in the performing arts, travel industry, hospitality and restaurant/food sectors.How long does it take to get better? The body - which covers organisations commissioning and providing health services in England, Wales and Northern Ireland - said it faces an"uphill battle" as it tries to restart cancer, stroke and heart care services, while continuing to manage thousands of sick and recovering Covid-19 patients.Image copyright Getty Images Health bosses fear the Covid-19 crisis could see the number of people waiting for NHS treatment double to 10 million by the end of the year.

7% from the previous month, the largest decline for 11 years.But as Robert Gardner, the Nationwide's chief economist, points out,"there are some signs this is starting to stabilise".Share your experiences What concerns do you have about your future and your career prospects? Have you considered changing course or your professional ambitions? What other options are available, educationally and professionally? You can get in touch by filling in the form below.He adds that this is because the current situation is not a typical economic downturn.Cancer services are also starting to reopen.Instead, the UK government - like others around the world - consciously decided to put much of the economy on hold.One of our journalists will be in contact for publication before we publish, so please do leave contact details.This was at the same time as putting in place a host of measures to support households and businesses, such as the worker furloughing scheme.It comes as Prime Minister Boris Johnson is to announce further plans to ease lockdown restrictions in England later, with zoos and drive-in cinemas among the businesses expected to be allowed to reopen from Monday.

The hope, therefore, is that as lockdown restrictions continue to be lifted, economies and housing markets will rebound.Read terms of service here.The already-long waiting lists were"certain to rise significantly", the body said, and coronavirus patients would continue to require care in recovery including respiratory and psychological treatment.In the US, house prices are still rising."Many areas [of the country] have put a moratorium on evictions, normally for 60 to 90 days, but in some areas for six months," says Prof Nori Gerardo Lietz, who teaches real estate investment at Harvard Business School.This means that the immediate problems have been pushed on to landlords and the banks, which isn't to say that there won't be trouble further down the line.Image copyright AFP Image caption A patient receives physiotherapy at the NHS Seacole Centre for patients recovering from coronavirus, as health leaders call for extra funding in rehabilitation and recovery services It also called for further assurances on the effectiveness of the Test and Trace programme and further guarantees over personal protective equipment (PPE).Especially as the US unemployment rate remains sky high since the coronavirus lockdown - 13.In a new report, the NHS Confederation said healthcare services were operating at a reduced capacity of about 60% because of infection control measures.

3% in May, albeit down from 14.7% in April."The legacy of this pandemic is yet to dawn - the professionals are still focused on the here and now," a spokesman said.However, behind those headline figures, there are other forces at work on the property sector.Many of us have suddenly realised that we can work from home and avoid the commute and the office, and this is already having an influence on the market.Image copyright Getty Images Image caption With many of us having successfully worked from home during the lockdown, will offices ever be as busy as before? Rightmove, the UK property website, has reported a with larger gardens and space for a home office..Hospitals, GP surgeries and other NHS sites will need time to adapt to social distancing rules and assess how they manage their workload.

This may not be a permanent change, but coronavirus is certainly making many people think about how and where they work and live.For the commercial property sector, the changes are far more dramatic, especially on the UK's High Streets."Retail [in the UK] has had problems for ages," says Prof Michael White, an expert in real estate economics, at Nottingham Trent University."It is inevitable that the Covid-19 pandemic will impact our health service in the months ahead but it is vital that ministers begin to address this backlog of delayed treatment and rising clinical need," he said."And at the moment incomes are obviously being hit by furloughs, and then there will be a squeeze on spending in a recession." It means an acceleration of what we saw before the virus struck - many High Streets have been decaying for years.Health leaders urged the government to prepare the public not to expect the same level of service for many months.

And now that many more of us have discovered how much we can buy online that is only going to increase in speed.He said there was"real determination to rise to this challenge", but added that"it will need extra funding and capacity, not least in rehabilitation and recovery services in the community".An added issue is that before coronavirus, the trend was already towards fewer shops on the High Street, and more services - things you can't get online - such as cafes, hairdressers and beauticians."The twist is that these services have been hit, so we have seen a slowing down of a growing trend," says Prof Andrew Baum, who leads the Future of Real Estate Initiative at Oxford University's Said Business School.Image copyright Image caption Many UK High Streets had already been suffering before the lockdown This means that High Streets have been hit twice as hard - many stores are shut and face-to-face service suppliers have almost totally closed.NHS England published a plan in May setting out how to.The result has been a rise in rent arrears.The already-long waiting lists were"certain to rise significantly", the body said, and coronavirus patients would continue to require care in recovery including respiratory and psychological treatment.

If this is just a matter of landlords missing or deferring one or two quarters of rents, that is not a massive problem for the industry.But if this is the start of a long-term trend then that will cause problems, and possibly a knock-on fall in the capital value of many retail properties, possibly by 20%-30% believes Prof Baum.In the US, where there has been a similar trend in the retail sector, the problem is slightly different.As land is so cheap, and planning permission so easy to get, there is a long tradition of retail parks and malls just being abandoned if they are not making money, or cost too much to upgrade.The impact of coronavirus could see this trend increase.A&E visits in England down to record low The Royal College of Nursing has warned it will be a"struggle" for"burnt-out" nursing staff on short-staffed wards, care homes or in clinics to restart services.

"The problem with US retail is not that it's over built, but that it is under demolished," says Prof Gerardo Lietz.Image copyright Image caption Nori Gerardo Lietz says that potential problems in the US housing market have been delayed For providers of office space, if coronavirus turns out to be a one-off hit, with just two quarters of rents deferred, there is little reason for property values to be affected at all.But instead, coronavirus might actually have a massive influence on the sector.After all, if the housing market changes as people look for more suburban and rural properties where they can work from home, there will be less need for office space to work in.The office property market will therefore have to adapt, something Prof White believes the industry is very good properly supported.

As he explains, if you strip out inflation,"average rents in London are the same as they were 100 years ago".He says this shows that the office property market has been very good at matching supply and demand for a very long period of time.As the UK's capital needed more offices in the 1950s and 1960s, many of the townhouses of the West End were converted from residential to commercial use.Then the City of London was rebuilt in the 1980s, with skyscrapers appearing, and Canary Wharf was constructed in London's former docklands in the 1990s.Recently, as London has needed more accommodation, buildings including office blocks have been turned back into flats and apartments.

Image copyright Image caption In the US old shopping malls are often just abandoned Overall, the property market has two things going for it even in these rapidly changing times.The first is that even if the price of property falls, it may still be a wise investment.This may sound perverse, but property is a long-term investment, and not many others are both secure and pay a good return.So if government bonds are paying 0.5% interest a year, or even less, and property is making 3-5%, you still have a good source of income if you are a private investor or global investment fund.

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Agriculture can be only protector of humanity when a crisis like this happen. If agriculture is not there hunger will destroy lives. So virus problem has given a lesson that agriculture lands should not be changed to concrete buildings(by real estate) Dear Jonty Bloom, unfortunately you’re not going to get your rent down by writing articles like this.

'May' really but why? How? It will be ok we are saving lives and that more important than anything.

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