The economic system will rebound after the pandemic, to create a Nineteen Twenties-style increase that can profit the property market, in keeping with Frederick Bristol, chief govt at property funding platform Brickowner.
Writing on LinkedIn, Bristol drew comparisons between the present world pandemic and the Spanish Flu of the twentieth century.
He has predicted that the Covid-19 vaccine roll-out might result in “a brand new age of business and prosperity – a Second Roaring Twenties.”
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The financial renaissance of the Nineteen Twenties was largely pushed by pent-up capital, he defined, in addition to technological and scientific advances.
In the meantime, UK households have constructed up a mean of £7,100 in financial savings for the reason that Covid lockdowns started, suggesting that Brits could have a surplus of spending cash which “might effectively gas a spending spree after we lastly beat Covid.”
Bristol added that this might translate into elevated alternatives within the peer-to-peer property market.
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“With increased financial development and rising incomes, persons are capable of spend extra on homes, growing demand and pushing up costs,” he mentioned.
“It’s additionally price remembering that there are underlying drivers that haven’t modified and received’t change due to the pandemic. London and the South East have a structural housing scarcity. Nationally, round 240,000 new properties are required annually however solely 174,000 had been in-built 2018/19, in keeping with the federal government’s personal figures.
“The actual fact is no-one will be certain what the close to or long run results of this pandemic will likely be – however what we do know is that the scenario we’re in shouldn’t be new. And historical past tells us that people are exhausting to maintain down.
“We’re economically-active, resilient and resourceful creatures – and that’s a cause to be cheerful.”
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