Househunting surge will be short-lived, warns Zoopla

PROPERTY website Zoopla has revealed a surge of activity from house-hunters since the market reopened – but there are concerns that many would-be buyers are putting plans on hold.

Demand in England was 88pc higher in the week to May 19 than the previous seven days, after restrictions were lifted on May 13. But Zoopla also warned that while many transactions held up by lockdown were expected to go ahead, four in ten buyers were now shelving their plans because of market uncertainty, loss of income or diminished confidence in their future finances.

The gloomy data is a blow to estate agents trying to reopen after weeks of minimal activity.

Foxtons became the latest to reveal it was reopening its doors yesterday, with the Londonfocused chain expecting all branches to be back in action by Monday.

It is returning with ‘tightlycontrolled’ measures to reduce the risk of spreading the coronavirus, such as recommending video tours, restricting the number of people allowed into physical viewings and providing masks, gloves and hand sanitiser to staff.

Housing minister Christopher Pincher welcomed the reopenings, saying it was time to ‘restart and re-energise our housing market’.

Zoopla said demand had rebounded particularly quickly in cities along the South Coast and in northern England.

But with projections for a major decline in economic growth and rising unemployment, it expects the rebound in demand to be short-lived.

Meanwhile, Foxtons also warned that there was ‘significant uncertainty’ over how long the London home sales and lettings market will continue to be affected by the pandemic.

It said commissions on sales during the eight weeks to May 15, when the housing market was effectively shut down, had fallen 61pc. Commissions on lettings fell 40pc. Foxtons shares rose 4.8pc, or 2p, to 43.8p.