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With it being a full year since the UK went into lockdown, I wanted to go over some of the financial impacts that have hit some people. COVID has had its negatives, but despite the bad times, there have been some positive outcomes.
It has been a rollercoaster of a year but now an end is in sight! I don’t know about you but I cannot wait for this all to be over!
How has COVID-19 affected people?
Covid-19 has had a huge effect on the people of the UK. Every single person has been effected on one way or another, including job losses, increased savings, real estate changes and much more.
Impact on work
In March 2020, Covid-19 created a huge problem for those who worked outside of their home. This meant millions of workers were told to work at home if possible. If this was not possible then they were furloughed. Meaning the Government helped to continue to give these people a salary to live of due to them not being able to work.
Impact on savings
A slight positive to arise from the pandemic is the increase in savings for many people. In fact, the BBC stat that “Six million accidental savers created by Covid crisis“. With many people still keeping their jobs and many being furloughed (getting 80% of their pay), they are still receiving an income whilst seeing fewer outgoings.
It is thought people in the UK are saving an average of £600 a month through spending less on meals out, days out, etc. I know I have saved more than usual this year. The average Brit has saved:
- £49 a month on petrol
- £57 by not going to pubs or restaurants
- £53 by not going to shops, and significant savings in other areas
- (totalling £617 a month on average for those still receiving their full income.)
For one, I know millions of families whose summer holidays were cancelled and money was returned do there’s a massive saving right there!
With people now working from home it means they do not need to spend as much money on petrol driving to and from work. This is the same for people who used to do their food shop themselves wo are now getting it deliveried meaning they do not need to spend the money on petrol!
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Impact on Real Estate
Throughout the pandemic, the BBC says “UK house prices are 6.5% higher than a year ago – the sharpest rise for nearly six years, the Nationwide has said.” The change has arisen from more people switching homes with more office space to be able to work from home. With COVID-19 forcing people to work from home, for some, this will become a permanent change. With people saving around £600 a month, people feel more comfortable looking into new housing.
If you want to read more on the topic you can check out the BBC post here: UK house price growth ‘fastest for almost six years‘.
27 Feb 2021: “A mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced at next week’s Budget.” BBC
With all of the changes in savings and real estate, looking for a new house in the pandemic can be confusing. I have had multiple friends and family move homes in the last year and one of the things I have found helped the most is a mortgage calculator, you can check it out here:
The accessibility and ease of this calculator were super easy! They use graphs of loan repayment along with monthly and yearly amortisation tables which helps to make it a lot clearer.
If you are slightly worried about the effects of your income, if you had to change jobs because of COVID-19, then don’t worry! They have specialised calculators which can help estimate mortgage affordability based on income:
The Government are also providing schemes to help new buyers including Help to Buy if you are looking to buy your own home.
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So that concludes some of the biggest financial changes to arise from the pandemic! So how have you been affected throughout the last year? Have you brought a new house? Have you managed to save your pennies? Let me know!
About the Author
Thank you for reading my post! If you want to find out more, check out my about me page. My name is Amber Page and I run The Unpredicted Page. You can find me over on: