Blog

Resilient property market bounces back

Friday, June 19, 2020

It is now six weeks since restrictions on property transactions in England were lifted, and indications demonstrate the resilience with which the market is robustly bouncing back from lockdown. It may take three months or so for the housing market to reach a ‘new normal’ but the early signs are good for those looking to sell their property. Demand is strong having been pent up over eight weeks lockdown, the market currently has approximately 50% fewer homes for sale compared to June 2019 and UK-wide average asking prices have risen 0.7% in the past month.

Figures released from Rightmove this week show the website’s busiest ever ten days occurred in May and June. Miles Shipside, Rightmove director and housing market analyst, said: “Following the initial shock of the early reopening of the housing market, England is getting moving again with a boom in traffic on Rightmove. There are no signs of panic selling or even a price dip. On this evidence buyers may now be trying to exchange quickly, as there are signs of high pent-up demand and upwards price pressure, rather than downwards.”

Pent up demand from buyers who could only window shop during lockdown has countered predictions of price drops in the short term at least. The Frost Partnership has seen an increasing number of new prospective buyers including strong demand from first-time buyers and a high level of enquiries from new applicants looking to move out of central London. Both buyers and tenants alike are looking for more outside space and the flexibility to work from home. These factors have helped to strengthen house prices outside London; lockdown has made buyers think hard about their needs and there is a strong belief that they will need to make fewer trips into the city centre.

Prices have remained steady in part due to the lack of properties on the market and vendors who have ventured to put their property on the market are demonstrating considerable confidence on pricing. Rightmove figures show that across the UK sellers are now asking for on average 1.9% higher prices than they were in March, for newly listed properties. This varies regionally however and vendors listening to advice from agents and pricing realistically are seeing the benefit of doing so.

Further analysis by Rightmove of the prices of over 7,000 newly agreed sales, provided by property groups, shows that buyers are agreeing to pay closer to the asking price than they were before lockdown. Between May 13th and June 4th, buyers were having offers accepted at on average 97.7% of the last advertised asking price on Rightmove. Whilst these sales have not yet fully completed, they are indicative. By comparison, completion data from the Land Registry for February this year showed an average of 96.6% achieved. Again, these are UK average figures with variations depending on local market conditions.

Meanwhile, for the lettings market, June has seen a rapid recovery, with demand accelerating and both new and completed applications matching 2019 levels. Supply of properties in the rental sector remains 15% down year-on-year for the UK and we have an extensive database of quality tenants looking for rental property across our network area. If you are considering letting your property demand is currently high and we can advise you on all the necessary steps and guide you through the lettings process to a stress free let.

While Covid-19 remains a threat in the UK, the safety of our clients and staff remains of paramount importance to The Frost Partnership. We have adopted new ways of working and are using new technology to safeguard our teams and our clients including the use of online viewings and strict safety protocols for all appointments. This has prompted highly positive feedback from our clients who appreciate the discipline and efforts made by Frost employees on their behalf and is reflected in the number of “5 star reviews” received by all of our 15 offices.

For more information about trends in the local property market, advice on selling or letting your property or if you would like to start your property search contact your local Frost office.