Chaired by Meryl Lewis from the planning team at Savills Cardiff, the panel of experts explored the impact of the pandemic on the housing market, shifting buyer preferences and the role of planning in recovery.

Concentrating on market outlook Lawrence Bowles, from Savills residential research team, reported a fairly robust picture across the UK. “Typically house prices will decline with a fall in GDP so this is expected. But nationally we have seen modest house price growth of 33% over the last decade, compared to 203% in the decade leading up to the global financial crisis, so the market is far less stretched. We’ll see recovery once unemployment returns to normal levels; in Wales that will come in 2022.”

“Transactional activity for Wales is currently at less than half the normal levels and when compared to England, where lockdown restrictions eased sooner, shows a slower rate of recovery.”

“There is strong appetite in the market. The number of properties sold subject to contract saw an 80% increase when compared to the same time last year. The stamp duty holiday has influenced some of this activity in England, but in Wales, the Land Transaction Tax holiday has less relevance because the savings are relatively small.”

“In Wales it seems more likely that pent up demand is being driven by the experience of lockdown. For many homeowners, lockdown highlighted frustrations with their current homes and the increased need for more inside and outside space.”

In a survey from the Savills residential research team, of 700 registered buyers and sellers, 49% of respondents said they placed more value on a garden while 44% said that a home office is now increasingly important.

Lawrence continued:

“The housebuilding market recovered quickly and 80% of construction sites across England and Wales are open and at normal capacity. But there has been a reluctance to start work on new sites.”

Paul Williams considered the role of planning in market recovery, noting that the pause in Local Development Plans (LDPs) will be significant as was the initial suspension of planning committees. The introduction of a web based format from April went some way to support progress along with the recommencement of some site visits at the same time.

“As expected, data from the Planning Portal shows a sharp decline in the total number of planning applications received across the UK during the first two months of lockdown. This was closely followed by an upturn in applications along with the reopening of construction sites.”

Paul went on to discuss the impact of covid-19 on the creation of LDPs and urged that delays should not be allowed to impact on recovery. “Welsh Government is indicating that LDPs being progressed will need changing to reflect the post covid-19 market. This process should not delay or prevent the progression of good schemes and plan-making and we would advocate an interim policy approach to support the recovery in Wales.”

Lawrence added:

“Covid-19 has had a sharp impact on the economy and lockdown measures have limited transactional activity in Wales. That said, the gap between supply and demand highlights the need for Wales to continue building new homes that take into account changing lifestyle needs and buyer preferences.”

A full recording of the webinar can be watched here.