House sales surge after lockdown
N.WALES SHARES IN BOUNCEBACK
THE housing market was expected to have been a big casualty of the coronavirus pandemic this year.
And while it certainly started off that way, its fortunes have now been well and truly reversed.
At the height of lockdown, it was predicted that house prices in the UK could fall by up to 10%.
But fast forward a few weeks and the cost of homes is now said to be at a record high.
According to analysts, prices rose by 2% in August – “the highest monthly rise” since February 2004.
Robert Gardner, Chief Economist at Nationwide, said that losses in May and June have now been “reversed.”
He added: “The bounce back reflects the unexpected activity eased.”
This unpredicted boost to the market has benefited sellers across the UK, including in North Wales.
New data compiled by Rightmove has revealed the locations benefiting most at the moment.
Surprisingly, those topping the list in Wales aren’t big cities.
Instead, Blackwood in Caerphilly saw the biggest jump in house prices according to the research.
It saw a 23 percent increase in August, compared to 2017 figures – an important indicator of popularity.
The average house in the town previously sold for £154,634 but is now worth an estimated £190,129.
There’s been similar increases in North Wales with the likes of Llanfairprapid since recovery in restrictions wll experiencing a market rise.
The average price in the Anglesey village is now £253,882, much higher than sales were back in 2017.
It means there’s been a 21.5 percent rise – with the average house previously having sold for £208,941.
The same percent increase is also being noticed in the housing market in Corwen, in August.
According to Rightmove, the average home in the Denbighshire town sold last month for £260,088.
This is a 21.5 percent increase on sales back in August 2017, which were reportedly around £214,136.
And the third and final local area to significantly benefit post-lockdown is Holyhead, on Anglesey.
The average house price there was previously £172,827 but this has now increased by 20 percent.
Those who sold properties in the town just a few weeks ago likely received around £207,450 in sales.
Some areas however don’t appear to be benefiting from first-time buyers moving in though.
According to Rightmove data, it’s Flintshire county which saw the biggest rise in new homeowners.
There was a 7 percent increase in house prices for first-time buyers in this county last month.
This was the sixth highest rise in Wales – going from £138,439 (April 2019) to £148,239 (April 2020).
Denbighshire wasn’t far behind Flintshire though experiencing a rise of 6% itself.
First-time buyers in the county can now expect to pay around £143,608, compared to £134,986 (2019).
Why has there been a boost to the market? According to Nationwide, there are a number of reasons behind the boost to the housing market.
This includes “pent up demand” now coming through, for those who wanted to move before lockdown. There may also be behavioural shifts which are boosting activity across the country this summer.
Robert said people may
“reassess their housing needs and preferences as a result of life in lockdown.”
Nationwide’s own research found that 15 percent of people were considering moving because of this.
The economist said “these trends look set to continue in the near term, further boosted by recent news.”
This relates to the stamp duty holiday which will encourage some to bring plans to move home forward.
The scheme – known as Land Transaction Tax in Wales – currently has a threshold set at £250,000.
It means buyers benefit from a holiday on tax paid on sales for homes worth below this financial limit. The scheme is expected to run until March 2021 – with the housing market set to change after this period.