REAL ESTATE
The UK Housing Market Amidst a Global Pandemic Are you unsure of what is happening with the UK property market right now? You are not alone. As we continue to make our way through these unprecedented times, and the market begins to feel the full effects of it, we at Knight Frank have assessed the impact so far. So, whether you’re thinking of buying, renting, selling or letting, here is a quick guide on where the market is currently.
• Buyers are seeking more space following long periods of working from home • Surging demand means extra 140,000 buyers in the queue to finalise their home purchase, according to data released by Zoopla • Following the purchasing spike, Zoopla estimates there are currently 418,000 sales in the pipeline which are yet to complete worth £112 billion • Mortgage approvals are now almost 25 per cent higher than they were in February • Halifax noted house prices were 7.3 per cent higher than a year ago in September, the strongest rate of growth since June 2016 London For sales, quarterly price growth returned to the prime central London property market in September for the first time since February this year. Meanwhile, for lettings, the combination of relatively high levels of supply and weaker demand has
led to the largest annual falls in more than a decade. • An average monthly increase of 0.2 per cent, the same figure recorded in February during the ‘Boris bounce’ that followed the Dec 2019 general election • Rental values continue to fall in September, and there was an annual decline to -8.1 per cent in prime central London • Annual decline of 6.9 per cent in prime outer London for rentals Supply has been driven higher by the addition of short-term rental properties onto the market, as well as owners opting to let rather than sell. Rest of the UK Mortgage approvals rose in August to their highest monthly level for nearly 13 years, according to data released by the Bank of England in September.
Exchanges in the property market outside of London reached an all-time high in the second week of October this year. The week was also the highest on record for the number of offers accepted outside the capital, underlining how momentum continues to build across the UK property market. U If you would like further advice on the property market specific to you and your needs, please get in touch with Alexander McLean at alexander.mclean@knightfrank.com or call +44 (0)20 3918 3174
OTFF ISSUE 13 ★ NOVEMBER 2020 | 55
