House price rises to stay strong’ for rest of year
HOUSE prices are set to hold firm this year as they remain ‘unseasonably strong’ in the face of the recession, according to research.
It showed that annual house price growth has remained at 2.5 per cent as demand continues to overtake supply despite the coronavirus pandemic.
It also revealed that house sales have sped up dramatically since the outbreak struck, with the time for a sale averaging 27 days in the weeks since lockdown, compared with 39 days over the same period last year. The monthly House Price Index from the property website Zoopla highlighted a particularly strong market in Manchester and Nottingham, where annual price growth is more than 4 per cent.
The post-lockdown housing market rebound is showing ‘little sign of slowing’, with buyer demand since the start of 2020 up 34 per cent against the same period last year, according to the website.
Zoopla’s Richard Donnell said: ‘Housing market conditions remain unseasonably strong despite the UK moving into recession.
‘ While the economy has contracted sharply and unemployment is rising, consumer spending has rebounded and purchasing manager indices are pointing to a wider rebound in the economy.
‘This is positive but the unwinding of the furlough scheme and other Government support is the next challenge that will test the strength of economic recovery.’ Mr Donnell expects house prices to end the year up to 3 per cent higher than at the start of January.
The report highlighted strong demand for three-bedroom properties, which have been the quickest to be snapped up, with an average selling time of 24 days.
The time it takes to sell four and five- bedroom houses has also decreased with higher demand for space after the lockdown.
Iain McKenzie, officer of the Guild of Property Professionals, said: ‘The surge of activity in the market is exceptional. Since the housing market reopened, our members have been busier than ever with some saying they have never been as busy as they are now.’
Some postcodes are enjoying a boom as buyers look to move out of the city to the suburbs. The trend is particularly strong in areas surrounding cities in England’s regions. Suburbs of Sheffield, Manchester and Liverpool are among those where more than two thirds of home listings are under offer or have sold subject to contract.
Data from the property advisory firm PropCast found London has eight of the ten postcodes with the ‘coldest’ home markets, according to The Daily Telegraph.
Houses with outdoor space are particularly popular with many estate agents reporting that as a result of lockdown buyers are looking for homes in greener areas.
The home builder Persimmon said last month its weekly sales had risen by almost 50 per cent since the start of July.
It was also reported last week that July was the busiest month for house sales in more than a decade, with the number of deals 38 per cent higher than in July 2019.
‘A wider rebound’