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Impact Of COVID-19 On Property Market Revealed In RICS Survey

Impact Of COVID-19 On Property Market Revealed In RICS Survey
02 June 2020
 

RICS professionals have reported a decline in business with 80 per cent seeing a decreased workload and 67 per cent seeing a decrease in new business enquiries. 

RICS have commented that their first survey on the impact of COVID-19 is “unsurprisingly consistent” with wider market sentiment relating to the UK’s economy and commercial activity.

In the survey of over 500 RICS professional members, reduced cash flow is being experienced by 69% and just under half of the profession, 49 per cent, is now working from home rather than on-site or an office location.

Just over half of respondents had been furloughed in April with 51 per cent not currently working and a further 5 per cent made redundant. Only 1.1 per cent of those surveyed had experienced no impact of COVID-19.

65 per cent of those participating in the survey also revealed that their construction projects have been delayed, and just under half cited site closure as affecting their projects. 

25 per cent answered that their clients have elected to take their property off the market.

 

Challenges around valuations

 

There have also been challenges around the valuation of projects, with 29 per cent unable to provide a property valuation. Additional challenges have been experienced with clients requesting or declining site visits against the policy of the contractor. 

Some project work has supported infrastructure development due to the COVID-19 pandemic with 2.4 per cent of RICS professionals stating that they have been directly involved in NHS projects.

 

Increase in rent and business rate suspension

 

The commercial market has been particularly impacted due to closure of retail, leisure and office premises. An increase in requests from occupiers for rent and business rate suspension has been reported with 33 per cent of clients seeking a rent holiday and 13 per cent of occupiers seeking help with service charge payments.

The survey in full can be accessed here.

Picture: A photograph of a city skyline

Article written by Ella Tansley | Published 02 June 2020

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