Prime sales lead recovery in property market
THE property market is showing signs of recovery following a knock from strict lockdown measures as demand for houses has surged since May.
Sales of UK properties in the week ending Aug 16 were up 61pc compared to the same week last year, according to Knight Frank, a global property consultancy.
The sales figures collated from Rightmove were welcomed by analysts who admit to being surprised by the resilience of Britain’s property market in the face of the country’s deepest recession in recorded history.
The biggest increase in deals took place in the prime market – usually defined as the top 5pc most valuable properties – since the easing of lockdown measures.
Oliver Knight, head of residential development research at Knight Frank, said the signs of a strong rebound reflect the “ongoing release of pent-up demand” after stricter lockdown measures earlier this year led to a drastic fall in market activity.
“It is also likely that there are wider behavioural shifts in play, as people reassess their housing needs – the ‘escape to the country’ narrative is one that has been covered in detail,” he said.
Figures from the Nationwide
Building Society show that house prices were 1.7pc higher in July compared to last year.
Knight Frank’s research also showed the number of sales for properties valued between £750,000 and £1m was 119pc more than in the same week in 2019. Offers accepted for property valued up to £500,000 were up 53pc.
In London, offers accepted in the week ending on Aug 16 were up 68pc.