373,000 transactions stalled - what's the impact on the housing market
Over the last few days ther has been a drastic increase in activity online, from tenants in particular with over 50 registered this week already. What does this mean? Should you as a landlord be marketing your property and should you move a tenant in?
Well, the last two days have seen a signficant increase in enquiries from tenants, and quality tenants. Is there a feeling in the market that people want to move? It certainly feels like that, and this morning Zoopla have just released the latest trends over the last month in their UK Cities Index Report.
Zoopla's UK Cities Index Report reveals some 373,000 property transactions have been stalled by coronavirus - worth £82bn in property value.
How many of these transactions complete ultimately depends on the duration of lockdown and the scale of the economic impact.
Either way, buyers and sellers are showing signs of activity with online views starting to increase by 30%. This will be crucial to the restoration of market health.
Demand and browsing starting to rise
While demand and browsing figures declined sharply ahead of the lockdown, this has since bottomed out. We’ve seen the start of a recovery in both areas in the last three weeks.
Demand fell by 70% ahead of the lockdown and through to the week ending 29 March. The number of buyers interested in property has started to rise steadily since then - albeit off a low base and it remains 60% below levels recorded at the start of March.
Browsing activity of property listings fell in line with demand, but to a lesser degree. After declining by around 60%, activity has bounced back more strongly over the last three weeks. It remains 37% lower than at the start of March.
“There is a two-speed housing market at present. Parts of the market are at a virtual standstill. However, online browsing and buyer interest have been rising off a low base over the last two to three weeks.
Once the coronavirus restrictions are relaxed, we expect to see the release of demand. The case for a stamp duty holiday to support a resumption of market activity is clear, and a high proportion of savings on stamp duty are likely to be spent, stimulating economic activity.
After the past few weeks, many households may feel the urge to move, for more space or longer-term remote working. This could boost activity in the second half of 2020, but this all depends upon how much the economy and employment is impacted over the rest of the year. Demand is rising but there is a long way to go until we see a return to typical levels of market activity.”
If you have any questions about how your home has been affected, give the team a call on 01283 537120.
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