A new report from WeBuyAnyHome outlines the impact the coronavirus pandemic has had on the UK housing market, with home sales inquiries rising compared to 2019 as widespread lockdowns and market disruption reduce buying appetite. It was revealed that the average decline was 32%.
The data compares home sales inquiries from January to September 2019 with the same period in 2020, and also compares numbers from the first quarter of this year to the second quarter of this year. Analyzing changes in sales demand.
According to the report, inquiries for house sales in Scotland also fell by a significant 48% in the second quarter of 2020, although the few areas in the UK that actually saw an increase in inquiries in recent months were all in Scotland: Edinburgh (+53.50%), Clackmannanshire (+40.00%) and Dunbartonshire (+11.80%).
However, in the north, the housing market has basically stagnated due to the pandemic. In Lancashire, inquiries fell by 38.4% year-on-year, while North Yorkshire, where mainly low-income households are struggling to sell, was hit by 39.2%.
As expected, London appears to have fared better than the rest of the UK, with sales inquiries down 14.2% last year, but still a significant decline.
However, demand has fallen significantly in some counties around the capital, with inquiries down 32.7% in Essex and 25.5% in Kent.
Despite the obvious fear of buying, mortgage approvals hit a 13-year high in September, with banks reportedly closing 91,500 mortgages in England. The bank said the stamp duty holiday and demand for more space during lockdown were driving demand to move.
Strict lockdown measures that took effect in the spring effectively brought the housing market to a standstill, but in recent months a “housing boom” has seen a “housing boom” make up for lost time, although some are skeptical that the trend will continue for long. are.
Andrew Monlake, managing director of mortgage broker Coleco, warned last month that the market boom was likely to run out of steam.
“The post-lockdown bull market is already over, with lenders lending despite continued struggles with supply capacity and concerns about the impact of rising unemployment, particularly on rising house prices. .”
So the numbers are confusing. Sales inquiries have clearly taken a hit this year, particularly in the north of England, and even if the sector has seen some fresh growth in recent months, it is understandable for investors to view recent trends with some caution. .
With the stamp duty holiday ending in March next year and a Brexit decision (deal or no deal) on the horizon, there is a good chance that momentum will be taken away from the housing market if the market is left in a state of permanent turmoil. It’s in On the other side of the new year, or maybe even before that.
