The pandemic made people realise their 5 year plan early. To move out and gain more space. People assumed life had changed forever post Covid. In reality the new norm isn’t that different from before. Meaning some may realise they moved before their time.
The assumption the office is a prehistoric relic
Many assumed employers, having seen how efficient their worker bees could be, isolated bar zoom, wouldn’t want them back. However, In the past few months we have seen employers begin to look at flexible working hours around the office. They have outstanding rental commitments to landlords and want to make use of their status symbols, dominating the London skyline. Words like ‘blended’ working have been adopted when tentatively informing employees that they need to come in 2 days a week with a view to 3. To entice them back, yoga lessons, ping pong tables and dog tolerance policies, are the new office norm. This is a ginormous step forward from what it was. But for many who moved further afield, they are about to understand why commuters loath Network Rail.
Who doesn’t resent paying a year on year increase for a delayed service.
In the Banking sector, employees have been asked to return to their desks. The Bank of England however decided to renege on its request of one day a week. No doubt under pressure from its elder statesmen, threatening to walk if they are made to travel. This is fine for those with their feet under the table but for those who moved jobs during the pandemic and have never met the team, or those climbing the corporate ladder – how do you keep them engaged when no one knows each other, let alone the company ethos?
London property comeback
Many didn’t want to go back but many craved the life not yet lived. Students have returned to central London with employees and now find themselves competing for rentals that lay dormant over lockdown. In prime central London, bidding wars to secure rentals has led to properties, in some cases, achieving 5% over asking.
East London has also seen a recovery in prices for a different reason. Culture, social life and entrepreneurialism. Many startups were born in the East End because of its nonconformist nature and the accepted eclectic mix. Now, the need for self expression is arguably more acute, given how restricted society has had to be with Covid.
Whilst central London watched its property prices stagnate or limp forward a few pc. Bidding wars over sales properties outside of London was the norm for over a year. With restrictions lifted, the London property market is stirring from its slumber. Houses have generally been selling well in the city, regardless of the pandemic, but with the return of International buyers and equity rich homeowners making the most of low interest rates. Reinvested either in a buy to let or a pied-a-terre in town, London looks set to hit the high life. Space will remain important but entertainment, friendship and convenience are equally essential when living in the present.
To underestimate the pull of London was a mistake. It is the king of the comeback. Post any financial crises it is always the first to recover and it’s not disappointing now.
