The housing market has experienced a “sharp turnaround” from its best one-year start since 2016, with homes for sale collapsing since the United Kingdom locked out.
Real estate site Rightmove said average home prices “on the declining daily number of properties on the market” increased 2.1% to £ 311,950 in the month between March 8 and April 11 compared to to a year ago.
However, he admitted that the data made no sense as most activity has ceased since the UK was blocked on March 23.
His report arrived when lead real estate agent Knight Frank called for reduced stamp duties and other support measures to avoid a collapse in the real estate market after the foreclosure ends.
Housing prices: statistics no longer make sense given the lockdown, said Rightmove
“Given the blocking and hiatus of key activities in the housing market, the statistics on the number of properties entering the market, the new prices asked by the seller and the new sales agreed are not significant,” said Rightmove.
“You don’t have a functioning market when buyers can’t buy and sellers can’t sell, so the focus should be on what is needed to help the market recover after the foreclosure can be safely relaxed, “said Rightmove.
Pre-lockout sales agreed to during the year through March 23 increased 11%, marking the best start to the year since 2016, said Rightmove.
As the foreclosure went into effect, customer visits to the website, which lists the majority of homes for sale across the country, fell 40%, although he said he started recover slowly over the past week.
The number of homes for sale fell “only marginally”, by 2.6%, said Rightmove, adding that the number of failed deals is similar to what it should have seen in a “normal three-week period” “
Rightmove director Miles Shipside said the estate agents had reported “good cooperation”, both buyers and sellers wanted to make deals together.
“Not Significant”: Average asking prices increased 2.1% to £ 311,950 during the month between March 8 and April 11
Cut stamp duty to boost housing market, says Knight Frank
Urgent government stimulus is needed to prevent a collapse of the UK housing market, experts warned.
The foreclosure will result in the loss of 526,000 home sales this year if left unchecked – starving the economy of at least £ 14.3 billion of DIY and renovation spending, rights stamp and VAT, according to research by real estate consultant Knight Frank.
He wants the government to apply stamp duty and expand the purchase assistance program.
Otherwise, he estimates there will be 38% fewer home sales this year than in 2019, even if the foreclosure ends in May, while 350,000 fewer mortgages would be approved by banks.
Tom Bill, head of London residential research at Knight Frank, said: “The move has a clear multiplier effect on the economy.
“Companies of different sizes in all areas of the economy are feeling these benefits, which the government will take into account when developing its recovery plan after the foreclosure. “
Peter Woodthorpe, director of Readings estate agencies in Leicester, said: “At worst, people stand to see what happens by the end of the foreclosure, but do not opt out of the transaction. “
Ben Hudson, general manager of Hudson Moody in York, said they are “doing virtual tours” of properties for potential buyers and tenants.
“The vast majority of current sales want to take place as soon as possible after the foreclosure and many potential buyers want to make an appointment as soon as we can visit again,” he said.
The number of homes for sale fell “only marginally”, by 2.6%, said Rightmove.
This comes when the Royal Institution of Chartered Surveyors warned earlier this month that the real estate market was about to calm down and expected record sales to drop.
At the same time, Cebr predicted that house prices would drop 13% this year. The crash will be caused by the rental sector, the economic think-tank said, as the amount tenants can afford to pay drops due to lower wages and unemployment.
Shipside said it would take “several months or more” for the market to find its mark, but they did not expect a significant price drop once the lockdown was completed and the market began to recover slowly.
He said, “Once the foreclosure is complete, agents will need to follow safe viewing precautions to give sellers the confidence to allow viewers to enter their own homes again, and buyers the confidence they can visit by safe homes for sale. “
“During this downturn, we do not anticipate significant price reductions, as home sellers will not be ready to lower their prices when it is not yet clear how the general public, businesses, the financial markets and the government will manage the transition. to whatever turns out to be the new standard.
How severe will the recession be – and what will the recovery look like?
The economic destruction of the coronavirus crash was revealed this week in a report from the Office of Budget Responsibility.
But while the OBR predicts an astonishing 35% drop in UK production in the second quarter of this year – with a three month lock – the other side of its chart showed a substantial rebound.
What must we do to make this recovery happen – and what will it look like?
In this podcast, Simon Lambert and Georgie Frost examine reports on the economic impact of Covid-19 and the potential for rebound, as well as the sectors and businesses that could seize the day it arrives.
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