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Insight & Opinion

London ‘lagging behind in property rebound as buyers look beyond capital’

Author: Gemma

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There has been a ‘rapid rebound’ in demand for homes since the reopening of the property market last month, new figures have shown.

Figures on the performance of UK property since the market reopened last month have provided encouraging reading for investors, with the release of demand that built up during the coronavirus lockdown driving a flurry of activity.

Some of the most positive trends have been recorded in the regions, with London “lagging behind as buyers look outside the capital”, according to Zoopla.

The property information firm revealed that, four weeks on from the reopening of the sector in England, a resurgence in demand had triggered an “unprecedented rebound” in new sales agreed.

Analysis by the company showed that demand for housing in June was 54% higher than at the start of March.

New sales agreed were just 12% below the levels seen in early March, thanks to a 137% rise in agreed transactions since the market reopened.

The Covid crisis and the resulting lockdown will have a big influence on property trends this year, but Richard Donnell, director of research and insight at Zoopla, was also keen to stress that the market rebound is “not solely explained by a return of pent-up demand”.

“Covid has brought a whole new group of would-be buyers into the housing market,” he continued.

“Activity has grown across all pricing levels, but the higher the value of a home, the greater the increase in supply and sales as people look to trade up. New sales in London are lagging behind as buyers look at commuting and moving into the regions.”

As far as values are concerned, the report showed that average asking prices of sales agreed were 6% higher than in June 2019, suggesting house price indices “may not register immediate price falls in the short term”.

Zoopla also published separate data predicting UK house price growth will hold at 2% for the next three months, with demand for housing delaying anticipated price falls until the end of 2020.

The rebound in housing market activity since last month’s reopening is an encouraging trend, particularly for investors who are looking for signs that UK property will continue to provide opportunities for returns in the coming years.

Contact Experience Invest to start a conversation about current prospects in the market.

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