Mixed fortunes for towns’ home prices during lockdown
The first UK House Price Index since May this year takes a retrospective look at sales data.
The Land Registry has begun publishing indices whose issue was stalled during a period of suspension. This enables it to publish the August data, to be released on October 21, as originally scheduled.
So its latest published figures refer to the April data which, unsurprisingly given lockdown measures and the closure of the housing market, shows that on average, UK house prices fell by 0.3 per cent between March and April.
They rose by 2.6 per cent in the year to April 2020, down from 3.5 per cent in March 2020.
The East of England experienced the greatest monthly price rise, up by 1.5 per cent while the South West saw the most significant monthly price fall, down by 2.5 per cent. Yorkshire values were down by 0.1 per cent bringing the average property price in the region to £165.560.
The East Midlands experienced the greatest year-on-year house price rise, up by 4.7 per cent and the North East saw the lowest annual price growth, down by 2.7 per cent.
Yorkshire’s annual growth was up by 2.3 per cent.
The greatest gains in the Yorkshire area between April
2019 and April 2020 were seen in Rotherham, which saw house prices rise by nine per cent and Selby, where values grew by 7.1 per cent. The biggest loser was soughtafter Harrogate, where values fell by four per cent.
More up to date data arrived from Carter Jonas this week, with its latest market report.
It says that there is a clear and ongoing recovery taking place in many sectors of the economy with
GDP growth of 8.7 per cent in
July pointing to a resumption of activity
It adds that the housing market has been exceptionally buoyant following the easing of lockdown restrictions. However, Carter Jonas warns that headline employment data is still not showing the full effects of lockdown as the furlough scheme is masking the real impact on businesses.
Its residential experts say: “As the scheme winds down over the coming weeks and months and we see a further increase in activity the employment and wage data will lay bare the potential longerterm damage to the economy.”
Over at Knight Frank, Oliver Knight, Head of Residential Development Research at Knight Frank, says the remarkable demand for homes could be due in part to wider behavioural shifts, as people reassess their housing needs with many dreaming of an escape to the country.
He adds that a closer look at the data shows that the biggest increase in deals agreed since the end of lockdown has taken place in the prime housing market and adds that a quicker recovery at the top end of the market tallies with a similar trend during the period that followed the global financial crisis.
Figures show the number of properties sold subject to contract above £1 million was 100 per cent higher than the same week in 2019, while for properties valued between £750,000 and £1 million the jump was an even larger 119 per cent.
By comparison, the number of offers accepted for properties valued up to £500,000 was 53 per cent higher.
“For now, pent-up demand, the stamp duty holiday and extension of the furlough scheme all continue to support a strong recovery in the market,” says Oliver Knight.