August has seen extremely strong rises in housing prices following the coronavirus lockdown with the property market seeing strong increases in buyers and property market trends.
It indeed looks to be a continuing trend throughout the housing market, with prices expecting to climb steadily in 2020 and new property trends unfolding for the industry that made a surprisingly quick recovery since lockdown ease. The House Price Index highlighted that homeowners are quick to sell up their properties with changes in their lifestyle priorities.
In a recently published Zoopla report, July showed a 2.5% rise in house prices in comparison to 2019 with an upwards increase expected throughout the next 4 months also of an estimated 2 to 3 per cent growth by December.
With impending fear of the UK recession, Zoopla has reported that despite the economic downturn it is unlikely that UK house prices will see a major decline. In fact, the growth is being fueled by changes in the nation’s housing needs over initial pent-up demand.
With many couples and families having time and motivation to reevaluate their housing needs and living conditions due to extended periods indoors, they have found themselves seeking larger living spaces buying bigger homes. This behaviour counteracts the impact of the recession on the housing market in the UK as it stands.
With this mentality in place, it is discovered that 4 and 5 bedroom properties are at a stage of selling faster than flats or apartments. This also has resulted in buyers quickly honing in on these size properties as a means to acquire more space for current living requirements.
Homes are now selling on average within 27 days which is 31% lower than the year previous. The fastest-selling properties on the market are the 3-bedroom properties across the UK at a rate of just over 3 weeks on average. However, the supply of these in-demand properties is low which results in faster sales to avoid missing out on gaining the property.
The appeal of flats and apartments are decreasing with selling on these properties taking much longer. 1-bedroom flats can take over a month to sell on average but still up on the period average last year. This is a surprising quality following the Covid-19 lockdown.
Upcoming challenges expected are the unwinding of the furlough scheme and government supports set to challenge the economic recovery. With this week seeing schools reopen and the new normal measures being put in place, it is predicted that wealthy homeowners will continue to lead the charge in the housing market and those with no mortgage and more equity seek to move home.
It is expected that those hoping to take their first ladder steps will find it harder with these changes in market trends initially. For more information on how to sell a house or buying a property advice, contact the team at Joules.