When the first lockdown occurred, the property market was barely operating. Allowances were made for existing deals to be concluded if it was safe to do so, and agents worked as and when and where they could, but by and large, the market slowed down considerably, if not completely shut down.
The housing market suffered terribly, but when it re-opened, there was significant demand for property.
This was never likely to be the same situation in the second lockdown of the year. With the stamp duty holiday in full effect, and agents operating as “close to normal” as they could, there was still activity in the market.
Demand for homes has increased since lockdown period began
Information provided by Dataloft shows there was a 14% increase in demand for homes since the beginning of the second lockdown period. When you consider the lockdown period means more people will spend a greater amount of time at home, this shouldn’t be a surprise. It is natural for people spending more time at home to browse properties more regularly.
Dataloft figures indicate there was a drop in demand from 5th October. It is likely many people were uncertain as to what the new Tier systems meant, and that there were concerns about an impending lockdown.
However, since the start of the second lockdown, buyers have been active. So much so that demand is only 10% down on the peak experienced in md-August.
The stamp duty has some time left, although with backlogs in the market process, prospective buyers are advised to move sooner rather than later.
What happens next in the housing market?
Richard Donnell, the director of research and insight at Zoopla, recently answered a range of questions on the property portal site. With the country enduring another lockdown, and the stamp duty holiday still in place, many people have questions about the market.
Richard was asked about the record sales which were agreed in the wake of the first lockdown. House price growth reached 3%, and the sales pipeline was at least 50% larger than the previous year. It is natural Richard was asked if this was sustainable.
He responded by saying; “The post-lockdown surge in demand is almost unprecedented. And that’s because there are three cohorts of buyers in the housing market that you wouldn’t normally have. The first is buyers who were forced to put their moving plans on hold when the housing market was shut down as a result of the pandemic. The second is buyers who have been spurred on by a once-in-a-lifetime re-evaluation of their homes. And the third is buyers who want to take advantage of the stamp duty holiday. This sheer volume of buyers can’t be sustained for a prolonged period of time. So, it’s unsurprising that demand has slowed since the summer and has now returned to pre-Covid-19 levels. However, it’s important to put this into content – appetite is still more than 40% higher than a year ago.”
If you are looking for guidance or information regarding the housing market, please get in touch with Hunters Camberwell. As a local estate agent who has the support of a national network, we are ideally placed to provide you with all the help and guidance you need to make an informed decision, so please contact us today.