House prices: Property market gains momentum as buyers make ‘once in a lifetime’ plans
08-30-2020
House prices: Property market gains momentum as buyers make ‘once in a lifetime’ plans
HOUSE prices are continuing to rise as the property market remains "unseasonably strong", a new report has revealed. The July Zoopla House Price Index has shown property trends are changing following the coronavirus lockdown.
By JUDY JOHNSON
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The housing market has been making a surprising recovery since the easing of the coronavirus lockdown in the UK - and it looks set to continue. In its latest report, Zoopla has predicted house prices will continue to steadily rise for the rest of the year as new property trends unfold. The House Price Index showed that homeowners are selling up fast as their priorities change.
The report revealed that house prices were up 2.5 percent in July compared to last year, and it’s showing no signs of slowing down.
Zoopla commented that “housing market conditions remain unseasonably strong” with an imbalance in supply and demand.
The property experts predict a growth of two to three percent in house prices by the end of 2020 as the momentum continues.
The news comes following the fears over the UK recession, with Zoopla reporting that a “major decline in UK house prices is unlikely” despite the economic downturn.
Property prices house price index
The latest house price index shows the market momentum continues (Image: Getty)
House prices latest
The report showed that house prices were up year on year (Image: Getty)
The growth is being spurred on by a change in the nation’s housing needs, rather than the initial pent-up demand, according to the report.
Since the lockdown many households have been reevaluating their living conditions after having to spend so much time indoors.
Previous reports have already shown a spike in searches for properties with more space - and the latest report reveals that buyers are rushing to buy bigger homes.
Richard Donnell, Research and Insight Director at Zoopla commented: “The ‘once in a lifetime’ re-evaluation of housing requirements on the back of the lockdown is a counter-weight to the impact of the recession on the UK housing market.”
The change in priorities means that four- and five-bed homes are selling faster than flats as homeowners look for more space.
The report also revealed that buyers are snapping up their larger homes fast.
Analysing how long each sale is taking, the property experts found that homes are selling in just 27 days - which is 31 percent lower than the same period last year.
The three-bed house remains the mainstay of the market, and are the fastest-selling properties across the UK, selling in just over three weeks on average.
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The most affordable towns in the UK (Image: Getty/Express)
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However, while it’s the most in-demand property type, supply is low - so it’s no wonder buyers are not hanging around to make an offer.
Meanwhile flats are taking much longer to sell as their appeal drops, with a one bed flat taking 34 days on average to sell; but it’s still a quicker process than it was in 2019 as the market shows surprising strength following the pandemic outbreak.
However, Zoopla believes that the next challenge will be the unwinding of the furlough scheme and other government support, stating that it will “test the strength of the economic recovery”.
With schools reopening next month and the UK slowly returning to a state of normality, the report predicted that wealthier homeowners will continue to lead the way for the housing market, as those with no mortgage or more equity look to move.
But it could be harder for those hoping to take their first step onto the ladder, with Zoopla commenting that “mortgage reliant borrowers will be squeezed out at the margins by some tightening in credit availability”.