Demand surges as Property Market Opens Up
The reopening of the property market has come as a huge relief to everyone working in the sector. It also appears to have peaked sellers’ interest as demand in the English housing market surged by 88% in just one week after the market opened.
Described by some as the post-COVID bounce (though this is a little premature), the UK Cities House Price Index Report does show a significant rise in demand in May, indicating more interest and demand than there was prior to the lockdown in March.
Current Homes not Living up to Requirements
Most of us have had to spend months in our own homes and we may quickly have learned they don’t actually provide for our needs. One of the arguments explaining the huge surge in demand is that people have reassessed what they need from their homes, and therefore are looking to find a bigger, smaller, or simply better property.
Lockdown in the UK has created a unique and unexpected demand. It is likely to be a one-off boost, but it is still something which may help many people find their dream home and keep the industry afloat and individual companies in the business.
UK Home Demand Differs By Region
The highest demand has been focused around coastal regions. Portsmouth and Southampton saw a 40% increase in demand when compared to before the Coronavirus outbreak. The demand has also had an impact on house prices in some parts of the country.
In our hometown of Newcastle, there has been a very slight change in average house prices year on year. Compared to April 2019, the house price average is up to £127,000, a 0.8% increase. While this isn’t huge it isn’t completely flat, and this is something to be cheered by.
Some cities are seeing considerable price increases, with Nottingham enjoying a 4.1% average price increase in May 2020, a trend which we can hope other cities follow.
What’s Next for the Housing Market?
The government has extended the mortgage payment holiday option for homeowners, which is something mortgage lends will have to bear. This is understandable however as many homeowners may still be on furlough and not earning their full wage and others may no longer have job security at all.
The slow rate of growth, in general, is something which experts believe will continue or may even become more pronounced as summer continues. The picture won’t be clear until more sales complete, a process which can take a number of months.
Activity in the market has remained fairly positive, movers still want to move home and continue with their property plans and as more lockdown restrictions ease, more people may have more confidence in making their next move.
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