It is fair to say there has been a big change between the first lockdown and the second lockdown in England this year. You might focus on people’s attitudes during the two lockdowns, but at Hunters Forest Hill, we can focus on the property market.
In the first lockdown, the housing market was all but shut down. Some deals could be completed, but for the majority of people and agents, there was no to very little activity between March and May.
In the second lockdown, this wasn’t the case. The housing market remained open. With the stamp duty holiday in place, the industry has been thriving. Many industry experts believe the UK housing market will end 2020 on a strong note.
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.
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.”
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.