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The COVID-19 pandemic disrupted industries across the world. And one of the major shifts to be brought about by the pandemic was the shift towards remote working. If nothing else, the pandemic taught businesses that roles could be performed from home, something that has since become the norm.
But how has this impacted the property market in major cities like London? As demand for office spaces declines and workers seek homes that are equipped for remote working, let’s take a look at how the work-from-home era has impacted the value of property in London.
1. Increased Demand for Larger Homes
The shift to working from home means a full-time worker in the UK spends an extra 35-40 hours in their homes, and that’s without factoring in commute time. So it comes as no surprise that we are prepared to spend even more on our homes.
But this isn’t just a luxury. If workers are going to be performing their jobs from home, properties with ample space to create a comfortable home office become a worthwhile investment, if not a necessity.
2. More Interest In Suburbs and Countryside
Prior to remote working, one of the main attractions of London was living in close proximity to workplaces. Now our homes have become our office, workers can perform their job from anywhere.
As a result, workers have taken advantage of this by avoiding city centre prices for more affordable suburbs and moving to more scenic areas like the countryside. It’s estimated that interest in rural areas has increased by 80% since the start of the pandemic.
3. Impact on Rent Prices
The rental market has been massively impacted by the move to work from home. Areas that were once desirable due to being based in business areas of London are now less in demand. Homes that were close to tube stations and city centre car parks are now also less desirable as the daily commute becomes a thing of the past to many workers.
On the flip side, landlords with spacious properties or homes in suburban areas can charge a higher rent to tenants.
4. Reduction in Demand For Office Space
It comes as no shock that the demand for office space has declined since COVID. Previously, major cities like London attracted major businesses who could subsequently pick from a wider pool of young professionals due to the attraction of working and living in London.
As employees now actively seek out remote options for an increased work-life balance, offices have seen their importance decline in favour of more flexible options.
The Future of the London Property Market
It remains to be seen what the future holds for remote working and property prices in London. As the world slowly moves on from COVID, many businesses are choosing to abandon their commitment to more flexible working options. If we are to see a full return to in-person working, expect to see a boom in city centre properties with more importance placed on properties close to transport links.
