A strong increase in housing demand since the re-opening of the british market in mid-may and the lower supply should support prices over the summer, with declines expected to the end of the year when the economic impacts of Covid have hit home.
The real estate Web site Zoopla has reported that sales agreed over the past four weeks, have bounced back to just above previous levels at Covid, with most of the rise in the cities of the north, and this will maintain the price between 2% and 3% during the next quarter .
The values will begin to decline further towards the end of 2020 and until 2021, when demand is expected to weaken in response to a likely increase in unemployment – to the extent that the leave plan ends – and because of the reduction in the number of mortgages available for people with smaller cash deposits. .
Sales agreed over the past four weeks, have bounced back to just above previous levels at Covid
In 2019, one-fifth of all home buyers purchased a home with a down payment of 10% or less, so that a decrease in the availability of mortgage loans to loan to value ratio this high could prevent this cohort of potential buyers to enter the market, effectively reduce the demand “, said Zoopla.
But for now, a resurgence in demand will push up prices, according to the website of the property.
“We are seeing a return of pent-up demand and the arrival of new buyers on the market, creating upward pressure on prices in the face of a decline in the supply of homes to sell, which was exacerbated by the lockout,” said Richard Donnell, director of research and insight at Zoopla.
“The growth in housing prices is expected to continue in the near term and we expect the downward pressure on prices will occur in the course of the last month of the year, while demand weakens. “
The real estate agent top of the range Savills, who said recently to expect a decline in housing prices in the United Kingdom of about 7.5% this year in the Uk, with a valuation of the properties in 2021, at varying rates of growth.
Zoopla said that the new sales agreed, under contract, have increased the most in England, where the market has re-opened its doors since may 13.
The sales rebound has been most marked in the north of England, led by Leeds, Sheffield and Manchester, where sales are up to 20% higher than in February 2020.
But in Glasgow, Newcastle and Cambridge, sales are still below the levels prior to the sars coronavirus, which, according to Zoopla, is due to a housing offer to sell “considerably” less.
Inventories at Cambridge, for example, are up to 40% lower than last year, because the sellers have not put their houses for sale during the period of closure.
The sales rebound has been strongest in the north of England, led by Leeds, Sheffield and Manchester
Zoopla said that the prices of homes in the Uk had increased by 2.4% to an average of 217 500 £ in may, compared to last year, although this value is primarily based on the sales agreed to before the lockout.
The provisional figures from HMRC, published yesterday, showed that house sales in may were still about half what they were a year ago, despite an increase of 16% compared to the previous month with the reopening of the housing market.
Anthony Codling, general manager of the platform real estate online Twindig, said that most of the data on housing prices were useless for the moment because there were not enough transactions to the base.
“The proof point for housing prices is the level of real estate transactions, without a solid foundation of real estate transactions. The prices of housing are as safe as houses built on sand “, he said.
He added that the best decision remained that of the cadastre, which has suspended its housing price index until further notice.
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