New research has offered encouraging signs for property investors as far as pent-up demand and regional price trends in the UK housing sector are concerned.
The April 2020 edition of the UK Cities House Price Index from Hometrack showed that the first steps to reopen the market on May 13th led to an 88% increase in buyer demand, which surpassed pre-lockdown levels.
While the report stressed that this substantial increase was temporary and likely to moderate in the coming weeks, it also noted that demand remains 20% higher than at the start of March.
It’s possible that, in an indirect way, the Covid-19 pandemic could provide a boost for property demand, because people are more keen to move having spent so much time at home in recent months. This could prove just as significant for tenants in the private rented sector as for homeowners.
Hometrack said it’s “important to acknowledge that millions of UK households have spent a considerable amount of time in their homes over the last 50 days”.
“Many are likely to have re-evaluated what they want from their home and are looking for change. This could well explain the scale and speed of the demand returning to the market,” the firm added.
As far as prices are concerned, the latest figures showed that year-on-year price growth across the UK in April was 2.4%, up from 0.9% in the same month last year.
The picture for property in the UK – and many other countries around the world – has been uncertain in recent months, but these figures provide further evidence of the market’s potential to shake off the effects of the Covid crisis.
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