PR: How have both the residential and commercial real estate markets been impacted by COVID-19?
SE: Working within the Real Estate legal market I don’t have to have statistics to tell me about the impact, I can just look at the work flowing across my Team: it is about 50% down on what I would normally expect. The secondary impact is on deadlines: usually once an organisation or individual has decided on a lease, sale, purchase or other transaction they want it done yesterday! Currently, there is more limited pressure to progress transactions. People want the deals negotiated but are taking more time to reflect and consider, especially once any title or search defects or issues are reported. It is currently a more cautious market where we are in the North West, Midlands and Wales.
PR: What are your expectations of the future of the real estate market?
SE: The fundamentals for Real Estate have not changed in the UK or abroad, businesses still need premises and people still need homes. The long-term future is still bright, but the horizon just looks further away now than it did three months ago.
PR: Could those in the industry have prepared better for the COVID-19 pandemic?
SE: As in so many sectors the emphasis for many organisations and individuals in recent years within the Real Estate sector has been on speed of delivery rather than quality and service. Organisations that retained their focus on how they dealt with customers and understood what those customers wanted have goodwill banked, and also have an appreciation of what is important to their customers. The organisations who are better prepared now have had a consistent long term ethos focused on service rather than seeking short term gain. The variations across the sector are enormous and I think it would have been practically impossible for generally agreed preparation to have taken place within the timelines of this pandemic.
PR: How has the industry pivoted and kept business going?
SE: Utilising video conferencing software, such as Zoom…and a sense of humour!
PR: How is the real estate industry utilising technology and is this helping to drive innovation?
SE: The sector has consistently looked at more use of technology but the fundamental has always been that documents needed ‘wet ink’ signatures. The relaxation this week by the Land Registry with “Mercury” signing reflects the need to adapt and will help to improve the market longer term.
PR: Is residential real estate likely to be changed forever following COVID-19?
SE: Post lockdown I suspect that many individuals will take more interest in the size of the garden! Home office space will also be valued and I can envisage a change from small 2nd, 3rd, 4th and 5th bedrooms into a connected and efficient workspace.
PR: When do you expect the UK markets to return to the level they were earlier in the year?
SE: When I am feeling bold, I think that the markets will bounce back quickly and my inner optimist hopes that the market will be right side up again in 6 months, but the reality is perhaps more likely to be 6 months after an effective vaccine is found. The market return is linked to wider progress on the virus and does not stand on its own.
PR: Will the high-wealth market continue to remain the same, with properties still viewed as an investment?
SE: Yes. I think that the position is similar to the Global Financial Crisis in respect of higher value residential properties, there is more turbulence for individuals competing in the First Time Buyer market than in higher-value properties.
PR: As people adjust to home-working, do you think there will be a long-term impact on the commercial property market?
SE: I think business will be more considered about taking space. There is an opportunity for business and individuals to be more efficient and to rebalance work and home, the beauty of a workplace is the combination of a good environment, social interaction, shared knowledge and experience, even with technology working from home does not tick all of those boxes.
PR: What are the green shoots of hope?
SE: The fundamental desire to get back on track and the proven ability of UK plc to work together to succeed, coupled with the ability of so many individuals who look for the best in every situation and work hard to achieve a target or goal.
