Peter Illingworth considers how the impact on the corporate workplace may affect the future of the Ryedale Housing Market.
Currently with the UK cities being the major hubs of the commercial business, social distancing will have a major impact on how business will be conducted when the lockdown is lifted.
If one considers an office worker is likely to require 2m of social distancing this will dramatically reduce the individual occupancy level of the premises. Therefore where 20 people may have been before, perhaps only 5 or even less could now occupy the space.
Multi storey prestige office blocks will be in the very difficult situation of allowing staff to access the floors quickly and in numbers due to the required social distancing in high speed lifts.
Getting people to and from work using public transport safely will be challenging. The only viable and realistic solution is to encourage workers to continue work from home. Workers will require more space at home to comfortably accommodate this change and therefore they will need to move where accommodation offers better value; this invites the question, will there now be an exodus from the cities to the conurbations? Perhaps resulting in losses in both corporate and residential values, in the city areas?
We can reasonably expect changes in the corporate workplace and this may have an anticipated ripple effect of increasing demand outside of the cities with Ryedale benefitting from this. Considering in the last twelve months there were only 805 second hand home moves in Ryedale, it is not difficult to imagine that a small shift in demand for houses would have a considerable impact on the upward prices of property in this area, in particular the higher value homes. It would suggest in Ryedale that as soon as the lockdown is lifted this would be a good time to buy before this effect may reach us, especially if an early vaccine is not produced. It would not be inconceivable for even some first time buyers who work within the corporate sector buying in the Ryedale area, in what may become the new normal.
For further information contact Peter Illingworth on 01751 431107