The coronavirus pandemic has had a huge impact on the UK economy, including the housing market. Earlier in the year this impact seemed negative as sales slowed and house prices stalled. However, as we enter autumn the news is much more positive - record breaking in fact. Some experts are already predicting that the annual rate of growth will peak by the end of the year at 7% higher than the previous year. Given the problems that the industry was facing earlier in 2020 this resurgence is great news for homeowners all over the country.
A record high for house prices
The last couple of months have seen an extraordinary shift in activity across the UK housing market with many more people looking to secure properties that meet their needs in a new post-lockdown world. The result of all this new interest and activity is that in October the asking price for a home coming to market reached £324,000. This is more than 5% higher than the asking price figure for the same period in 2019. While activity has begun to slow down slightly, all the predictions are that it is likely to pick up again before the end of the year so that house prices will finish 2020 on a high.
Previous records are being smashed
2020 has been unprecedented for many reasons but not many would have predicted that housing market records would be smashed as a result of the pandemic. But that has been the case as house prices have risen higher and higher as we move towards year end. There has also been a significant reduction in the time it now takes to process sales. It takes just over 50 days to sell a home now, which is the fastest this timetable has ever been - continued uncertainty over lockdowns and the desire that many people have had to move to a new property as a result of a previous lockdown experience could well be the driving force behind the need all parties have to ensure that a sale goes through quickly.
Sales are rising and buyers are active
Another key statistic is the number of sales - while this was very low earlier in the year it has now risen sharply. The figures for October show that the number of sales rose 70% year on year and that the number of active buyers driving the market is 66% higher than the figures for 2019. There has been a trend towards buyers being willing to pay prices that would previously have exceeded expectations in order to secure a property that exactly meets their needs. Though many in the industry have cautioned that some pricing may now be a little optimistic, especially for those properties that don’t fit the post-lockdown template that many buyers are hoping for.
The UK housing market may have had a tough time earlier in 2020 but looks to be finishing the year on a considerable - and record breaking - high. Check out our property for sale at Parkes, real estate agents London.