The economy will rebound after the pandemic, to create a 1920s-style boom that will benefit the property market, according to Frederick Bristol, chief executive at property investment platform Brickowner.
Writing on LinkedIn, Bristol drew comparisons between the current global pandemic and the Spanish Flu of the 20th century.
He has predicted that the Covid-19 vaccine roll-out could lead to “a new age of industry and prosperity – a Second Roaring Twenties.”
The economic renaissance of the 1920s was largely driven by pent-up capital, he explained, as well as technological and scientific advances.
Meanwhile, UK households have built up an average of £7,100 in savings since the Covid lockdowns began, suggesting that Brits will have a surplus of spending money which “could well fuel a spending spree when we finally beat Covid.”
Bristol added that this could translate into increased opportunities in the peer-to-peer property market.
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“With higher economic growth and rising incomes, people are able to spend more on houses, increasing demand and pushing up prices,” he said.
“It’s also worth remembering that there are underlying drivers that haven’t changed and won’t change because of the pandemic. London and the South East have a structural housing shortage. Nationally, around 240,000 new homes are required each year but only 174,000 were built in 2018/19, according to the government’s own figures.
“The fact is no-one can be sure what the near or long term effects of this pandemic will be – but what we do know is that the situation we’re in is not new. And history tells us that humans are hard to keep down.
“We are economically-active, resilient and resourceful creatures – and that’s a reason to be cheerful.”