Five Years After Lockdown: How the Housing Market Has Changed
It has been five years since the UK entered its first national lockdown in response to the Covid-19 pandemic, and the effects on the housing market are still being felt today.
The months and years following the initial lockdown saw dramatic shifts in buyer priorities, pricing, and the way properties are marketed. As 2025 progresses, industry experts reflect on the long-term impact of the pandemic on the property sector.
Buyers Still Prioritise Space and Flexibility
One of the most notable trends to emerge from the pandemic was the demand for larger homes with gardens and home office space. While the frantic rush to the countryside has eased, buyers continue to seek properties that offer flexibility for hybrid working and outdoor living.
Open-plan designs remain popular, but there is now a greater emphasis on homes with separate spaces to support work-from-home lifestyles.
The ‘Race for Space’ Has Left a Lasting Mark
The so-called “race for space” saw house prices in rural and suburban areas soar as city dwellers sought more room. Although the extreme competition has cooled, demand in commuter towns and semi-rural areas remains stronger than it was before 2020.
Estate agents across the country report that buyers are still willing to move further afield for the right property, provided transport links and amenities are good.
Price Growth Moderates After Post-Pandemic Boom
Between mid-2020 and late 2022, UK house prices rose sharply, fuelled by pent-up demand, low interest rates, and temporary stamp duty relief. In recent years, price growth has slowed, particularly as interest rates have risen and affordability has become a greater challenge.
However, average property values remain significantly higher than they were five years ago, particularly in desirable suburban and rural areas.
Digital Tools Are Now the Norm
The pandemic forced a digital revolution in the property industry. Virtual viewings, video tours, online mortgage applications, and digital signatures are now standard practice.
While most buyers still prefer to physically view a property before making an offer, the expectation for high-quality online listings, detailed floorplans, and virtual walk-throughs has become the norm.
Rental Market Under Pressure
The rental market has also seen considerable change. Demand for rental properties has surged, driven by higher mortgage costs and tighter lending criteria for first-time buyers. At the same time, new regulations introduced to protect tenants have reshaped landlord responsibilities, with an increasing emphasis on property standards and long-term tenancy agreements.
A Market Still in Transition
Five years on from the first lockdown, the UK housing market has stabilised but remains in a state of evolution. Buyers are more focused on energy efficiency, space, and quality of life, while digital tools and hybrid working continue to influence how homes are bought and sold.
Industry professionals say the pandemic accelerated changes that were already emerging, and that the housing market will continue to evolve as buyer expectations shift and economic conditions change.