How Will Coronavirus Affect House Prices | Estate Agent

Card image cap

 

The coronavirus has had a huge impact on the economy and with this comes an impact on house prices. Whether you are a buyer, seller or homeowner the Covid-19 outbreak is likely to have had some effect on your position and future in the housing market, but what exactly are the effects? The UK property market enjoyed a mini boom in the second half of 2020, but it is uncertain whether house prices will continue to rise once the governments stamp duty cut ends. We don’t have a magic ball so we can’t tell you for certain what the future holds, but here is an idea of how coronavirus has changed the property market so far.

What’s Happening to the Property Market?

The property market has been open throughout the coronavirus pandemic, so estate agents have been conducting viewings and buyers and sellers have been able to move despite the lockdown measures. Since July 2020 the property market has been on the rise, mainly due to the government’s decision to cut stamp duty, this has encouraged a rise in transaction numbers, as much as 19% higher than last year.

How Have House Prices Changed?

A clearer picture of how coronavirus has impacted the property market is beginning to emerge, but with ongoing stamp duty holidays and the prospect of another lockdown these prices are likely to fluctuate more.

One of the most reliable barometers of house prices is the Land Registry’s House Price Index. It is based on sold properties but works on a 2-month delay, so the latest figures available are for November. These figures suggest that the price of a house on the UK property market increased by 0.7% month on month and 5.4% year on year.

UK banks also offer an index against which to measure price increases. as Nationwide reported a 0.8% month on month increase and a 7.3% annual rise, whilst Halifax reported a 1.2% monthly rise and a 7.6% monthly rise.

Coronavirus Affect House Prices

Property Market Predictions

Despite the coronavirus pandemic there is optimism surrounding the property market. Rightmove reported that the average time to agree a sale in November 2020 was 52 days, in comparison to 67 days in November of 2019. Experts are, however, unsure how long this will last. Some believe that property market could slow down once the governments coronavirus financial support schemes, and stamp duty cuts, come to an end.

If you are looking to buy a home the stamp duty holiday ends on 31st March, so time is against you. You should bear in mind that the stamp duty cut has placed a huge strain on estate agents, surveyors and conveyancers. So, if you are looking to move during the coronavirus pandemic you may find the process may take longer than usual.

Categories