While it was likely there would be a spike in housing demand after the re-opening of the market, some people have been taken aback by the level of interest. According to data contained in the latest monthly UK Cities House Price Index Report, the demand for housing has increased by 88%.
This would suggest that the demand from buyers has increased beyond the levels experienced before the coronavirus lockdown. This shouldn’t be a surprise. During the lockdown, many people will have studied their options and concluded that a move is right for them. Therefore, as soon as the market re-opened, many people were always likely to engage the market.
There has also been an increase in the number of agreed sales since the re-opening of the market. However, it will take some time for these numbers to increase by a significant amount. As it usually takes around two to three months to go from a buyer search to concluding a deal, it will take some time for new deals to conclude.
Existing property deals are being concluded
This increase likely comes from house deals which were close to being completed, but which were subsequently paused during lockdown. While there has been an increase in new buyer demand for homes post-lockdown, the opening of the market was effective in assisting people to finalise deals which were already in place.
Richard Donnell, director of research and insight at Zoopla, says: “The COVID crisis and 50 day lockdown has created an unexpected one-off boost to housing demand. Millions of UK households have spent a considerable amount of time in their homes over the lockdown period and missed out on hours of commuting. Many households are likely to have re-evaluated what they want from their home. This could well explain the scale of the demand returning to the market.”
Manchester has been listed as one of the cities with the fastest house price growth, rising by 3.8% in May.
Many prospective buyers are keen to press on with their plans
In a study carried out by Zoopla, which spoke to potential movers, close to 60% of respondents said they will press ahead with their property plans. The remaining respondents said they will place their plans on hold until there is more certainty in the market and economy.
While there is rarely a period of complete calm and certainty in the housing market, it is easy to see why people want to hold off for now. For some buyers, the attractive interest rate and increasing array of mortgage products returning to the market, there will be an opportunity to arrange a suitable property deal. However, as is always the case, prospective buyers should ensure they feel confident about making a move.
With convenient transport links to the centre of Manchester, and significant developments taking place, Stockport is the ideal place to buy, live or invest. As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html