The UK housing market is experiencing a seismic shift, having to flex in every which way to accommodate disruptions to pricing, new ways of selling and discovering potential buyers, and recreating the human ‘touch’ through virtual outlets; and while many have tried to look at where the future of the market may lean, unfortunately, there’s no way of knowing, only planning.
Across the board, the general consensus is that property prices will fall this year, however the spectrum of forecasts is wide. On the severe end, the Centre for Economic and Business research predicts a 13% correction and Knight Frank has taken a milder approach, suggesting the average price reduction may only reach 3%. Factors weighing in on these estimates include the rising unemployment rate and supply, which responds to the three D’s: death, debt and divorce.
To that point, the demographic of prospective buyers may also be shifting from those looking to upgrade to those looking to take their first steps on the ladder. For millennials looking to capitalise on falling prices or those looking for affordable housing that’s typically few and far between, coronavirus may usher in a new era of buyers more open to riskier purchases for a lower price tag. Queue the off-plan deals and virtual sales.
A tool built for post-Coronavirus selling: ebrik, promoting peace of mind for builders, buyers and residents
Simply put, do as the pharmaceutical companies do. Reshift priorities to production of the most in-demand and rejig budgets towards investing in tools that consolidate work across teams to finance projects upfront, rather than at later stages of the building or listing process.
Now let’s make this come to life as simply as it sounds.
It’s more likely you’ll get newer buyers with shallow pockets to convert first, so prioritise projects that cater to this demographic. Regeneration schemes, help-to-buy and housing under the £500k mark will be in high demand as first-time buyers who have been holding out hunt for a good deal. In turn, this may mean that first time and younger buyers could potentially take greater risks in buying a property at the right price. Maximising off-plan sales and virtual property buying will become even more important as the pandemic plays out.
Buyers’ priorities will have changed, though, as city living during lockdown has greatly increased the value of gardens and balconies. Nearby greenspace will also come into play during prospective buyers’ quests. And though isolation and distancing may be the way forward, the need for that ‘community feeling’ will be even more important going forward, a growing trend amongst younger generations long before coronavirus took hold.
What developers and housing associations will need to befriend their new buyers will be tools that promote transparency in the buying and building process with an added human touch to encourage new buyers to take the plunge in these extenuating circumstances.
Despite the potential for first-time buyers to take a chance on riskier buys for the right price, they will still be on the lookout for as many reassurances as possible in all the areas they can’t currently review themselves. How do you know whether the construction timeline will be accurate? Will there be a community feel to the building? Where is the nearest green space to walk to when I’m working from home? How will I connect with the housing association or development company when I buy? As a developer, you need to be sure all of these questions can be answered remotely and promptly to increase buyer confidence.
Ebrik helps to minimise risk during the virtual buying process. With a 360 tool here to help you attract and engage new buyers, ebrik has a three-pronged feature list that helps you maximise off-plan sales by showcasing the entire construction process through an interactive buying and communication experience.
Help buyers through every step of the sales process with ebrik’s virtual sales portal, brikBuy, where buyers can video call with building agents and answer any potential questions as a first touchpoint. An interactive visit can be arranged during or after the call, as well, so that buyers can explore a marketing suite in 360, reading tidbits about the property and taking measurements as they move around. With estate agent websites and US equivalents, Zillow and Redfin pushing 360 tours, buyers now expect this level of online interaction. Ebrik is the quickest and easiest way to implement an entirely digital sales suite.
But engaging buyers before the build is still a tough feat, that’s why ebrik’s brikBuild tool will help you showcase the entire construction process, from the first foundations laid to the individual material specifications being applied. Finally, there’s a way to answer buyers’ questions about timelines, building blueprints and site monitoring all in one place. Better yet: because ebrik’s tools are fully customisable to your project needs, you have full control over what buyers’ see and how frequently they’re updated. In fact, a majority of buyers surveyed felt that increased transparency in construction would encourage them to buy an off-plan flat.
Between both buyer and builder, communication and community will become increasingly more important even after lockdowns are lifted, where physical barriers still limit visits or interaction between tenants. That’s where ebrik’s chat platforms and surveys come in. Give homebuyers and tenants the chance to speak with each other and with you as both a community-building and feedback-generating exercise.
We know this likely wasn’t the 2020 you were planning for, neither were we. But now is the time to take the right risks and invest in a tool that helps you reach your targets, despite the evolving climate. Buyers have changed, so should you.
Find out more about how ebrik can help you reach your goals: ebrik.co.uk
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