With the nation experiencing a second lockdown period across November and December, it is natural for onlookers to ask what sort of impact this period had on the housing market.
It should be noted the second lockdown differs from the first, especially with respect to the housing market staying open. The closure of the market between March and May significantly affected the industry, and created a high level of pent-up demand when the market re-opened.
There is prominent demand for London homes
With the second lockdown, the impact wasn’t as harsh. The housing market remained open and while estate agents had to follow strict guidance, deals were going through.
Marc von Grundherr, director of estate agency Benham and Reeves, said; “This time around, it’s business as usual as the property market remains open. If anything, we may well see a second surge of buyer demand from those that will find themselves with more time on their hands and may choose to look to purchase now ahead of Christmas.”
When you consider the stamp duty holiday is still in effect, it is just as well that the market remained opened. The chance to save up to £15,000 on stamp duty fees is a considerable saving, and it is easy to see why many London buyers have been active in the market of late. When you also consider the impact of the previous lockdown, it shouldn’t be a surprise to learn the London housing market is highly active as we move towards the end of 2020.
Leading industry observers believe the second national lockdown will not impact the London market. With data from Knight Frank indicating October was the third highest month in five years, there was considerable activity heading into the lockdown period.
A spokesperson for the company said; “Since the first lockdown ended, we have witnessed an upward trend again. This is still going strong six months later so it is more than just a release of pent-up demand.”
Prime Outer London is performing well
In Prime Outer London, property prices rose by 0.9% in the three months leading to October 2020. This was the highest growth in five years, and there is no denying the impact of this year has driven additional demand.
In Belsize Park, the quarterly rise was 3.2%, which was significant, and greater than the rise in comparable parts of the capital. There was a rise of 2.3% in Dulwich, an increase of 2.1% in Wandsworth while Wimbledon experienced a rise of 1.8% in this time-frame.
Tom Bill, Head of UK Residential Research at a leading name in the UK property market, and he said; “A second national lockdown in England is unlikely to impact the prime London property market as the first one did. The property market will remain open during the month-long lockdown and momentum generated since the market re-opened in May will drive deal activity into Q1 next year.”
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
