It’s pretty safe to assume that, for the most part, the pandemic has changed the UK retail economy significantly and for the long term.
It’s pretty safe to assume that, for the most part, the pandemic has changed the UK retail economy significantly and for the long term.
This isn’t a suggestion that these changes have come out of the blue, simply that things have been accelerated quicker than any of us could have assumed.
For anybody that reads a newspaper, they’ll have seen the headlines and endless pieces about the decline of the British high street with many traditional big names falling under the weight of changing consumer habits in the past 15 years.
It’s not radical or revolutionary to suggest that most consumers now do a great deal of their shopping online, and only a select few companies have managed to maintain a foothold in the retail market by holding on to physical retail premises.
The pandemic, and the restrictions keeping us at home, have accelerated that process unimaginably and even those committed to still going to physical shops for things like clothes, electronics and other things have found themselves fond of the convenience of having those products delivered to their door for the same price or less.
That has created something of a quandary in terms of our communities and high streets. If many of the businesses that were inhabiting them are now leaving, what’s to be done with the properties they’re leaving behind?
Residential property
The evidence suggests that there will be two new uses for this retail property that’s left behind.
Firstly, it’s expected that in most town centres larger chains simply won’t look to open up but will instead move their operations online, however, there is good evidence that most of these will be taken up by more localised and artisan businesses as demand for them continues to grow.
Personalised and unique products, as well as independent hospitality businesses, are growing almost exponentially in demand in comparison to nationalised chains, and there is now an expectation that they will largely replace them.
Having said that, this is highly unlikely to replace them in full, and there will be many vacant properties remaining.
It now seems as though many of these are being converted into residential property, thanks largely to the standout performance by the property market in the UK last year and the huge demand driving it.
Private Rental Sector
It follows a notable and pronounced trend towards huge growth in the Private Rented Sector (PRS), with many now looking to move into rented housing in towns and cities.
Last year house prices grew by a huge 8% or more across large swathes of England, and this reflects a shift from owning property towards renting. Yields and rents both grew in line with prices, and this has been encouraging many more landlords to join the market too.
Our advice is simple; the rental market is set to grow even more this year, but there will be competition. If you’re looking to get into the market or grow your presence then now is an especially good time, and the resale market in buy to let is absolutely booming right now.
Why not get in touch with us today to discuss your opportunities?
