UK property market reopens, buyer demand spikes 88%
Since the government decided to lift the ban on property viewings and valuations therefore reopening the property market, buyer demand has now exceeded pre-lockdown levels.
Because of strict measures implemented to contain the spread of Covid-19, the UK’s property market came to a standstill during March and April. However, ever since the relaxation of lockdown measures in mid-May, buyers’ pent-up demand has jumped 88 per cent, 20 per cent higher than the start of March.
In just two weeks, new sales agreed in England have increased by 12 per cent. Further to this, 60 per cent of would-be home movers across Britain said they plan to go ahead with their property plans, according to a new survey by Zoopla.
The latest property market index shows an annual price growth of +1.9 per cent. Sales volumes are expected o increase further but at a more moderate pace given the 2-month lag between new demand entering the market and sales being agreed.
A rebound in demand was to be expected, especially given how strongly the property market started the year. The scale of the recent increase in demand is substantially high, reflecting the fact that the market has been closed for 50 days (15 per cent of the year), at one of the busiest times for market activity.
Mortgages for Business sales director, Jeni Browne, said:
“There is a significant amount of pent-up demand in the housing market because potential buyers and sellers held off last year due to the uncertainty that Brexit and the general election created. We experienced the start of the Boris Bounce in early 2020, where the market picked up significantly only to be restrained again by Covid-19.
“As such, I would expect this demand to return as soon as it is safe for people to start moving. Any reduction in rent during this period will be minor.”