The last 18 months have been a grind for all of us, and businesses in virtually every industry have suffered the effects of the pandemic. Housebuilding, property development and investment have certainly suffered — but now there’s light at the end of the tunnel. As the country slowly starts to come out of stasis, there are signs of awakening across the industry. So how has COVID19 affected the property world?

Months and months of lockdown depressed the market, as people were unable to view properties and doubted the wisdom of moving house at the height of a pandemic. By May of this year, year-on-year house sales were down by nearly three quarters. However, throughout the pandemic, in most parts of the UK construction was allowed to continue as the work is mainly out of doors. That meant that property developers were able to continue with their activities, and new buildings were completed so property investment could continue.

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Now that the country is starting to open up again, the pent-up demand for new homes is driving the market backup. Estate agents have responded to the constrictions of the pandemic, by offering virtual viewings and video calls to potential clients. Property developers are additionally targeting first time buyers, thanks to the government’s latest initiative — the 95% LTV mortgage guarantee scheme. This scheme reduces the riskiness of high loan-to-value mortgages and allows for buyers who can only provide a deposit of 5% of the value of the property.

Furthermore, the extension of the stamp duty holiday until the end of June this year has acted as an incentive to get the property market moving once again. The stamp duty holiday means that property purchases completed by 30 June will not be liable for stamp duty on the first £500,000. This can be a significant saving for hard-pressed first-time buyers — up to £15,000 in some cases. Additionally, the Help to Buy Equity Loan is another government-backed scheme helping the property market to thrive.

These measures have enabled property developers and investors to move forward with confidence, and as the economy bounces back after a year in hibernation, the demand for new builds as both homes and investments looks assured.