Prime sales lead re­cov­ery in prop­erty mar­ket

The Daily Telegraph - Business - - Front Page - By Hasan Chowd­hury

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.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.