Working from Home and its effect on the Property MarketPosted on 6th May 2021 in News
In our Spring Market Update – we looked at a general overview of the Glasgow Property market and why it was still so busy after nearly a year. Today we’re delving into the effect that home working has had on the property market, and it’s more profound than many would expect.
Although most businesses are starting to reopen, many companies have discovered that they are able to function just as effectively with their workforce operating from home. Not only does it save people the commute, but it also helps save the company paying as much in rent for office space! This is the point where you’re probably wondering – what does any of this have to do with the housing market?
Working from home has directly impacted what many people need from their home. A lot of people have found themselves needing dedicated office space to work from to create a stable home working environment and with spending so much time in the house, comes a need for outdoor space to relax and unwind (on those occasional nice days). With approximately 73% of people in Glasgow living in flats, many have found their flat no longer offers what they need from their home.
With flats no longer being suitable for many people, this has driven up competition for ‘family style’ homes with room for office space and gardens to relax in. Coupled with the backlog we discussed in our Market Update, so many people searching for the same type of property has created unprecedented demand, and to put it simply, there just isn’t enough houses to go around. Not only that, but with property selling so quickly, the market has again adopted a ‘buy before you sell’ philosophy due to the confidence people have that their existing property will sell quickly. This creates another layer to the backlog of buyers, as flats tend to be more popular among first time buyers, many of whom are struggling to find properties due to a decrease in stock available – this of course is a knock-on effect from the lack of houses available. This in turn causes prices to increase, as a lack of stock creates more competition among buyers, ultimately driving up sale prices.
At first glance, it’s understandable why the connection between working from home and the property market aren’t easily recognised, but when you break it down the link becomes clear. One thing that’s certain is that the market will continue to adapt to the buyer’s needs – but for many people what this means is having to face larger competition for a while longer yet.