House prices hold firm despite recession threat
House prices are set to hold firm for the rest of the year as they remain "unseasonably strong" in the face of the recession, according to new research.
Zoopla's latest monthly House Price Index has revealed that annual house price growth has sustained at 2.5 per cent as demand continues to overtake supply despite the coronavirus pandemic.
It revealed that house sales have also sped up dramatically since the outbreak struck, with the time for a sale averaging 27 days in the period since lockdown, compared to 39 days over the same period last year.
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, Zoopla said.
Richard Donnell, research and insight director, Zoopla, 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."
He said he expects house prices to end 2020 between two per cent and three per cent higher than at the start of January.
The report highlighted a strong demand for threebedroom properties, which have an average selling time of 24 days.