With so much activity and challenges in the housing market, people are determined to get as much information as they can before making a decision. At Stones Residential, we are pleased to say we have welcomed many vendors and buyers of late, and we are happy to share our insight into the local market.
We also stay in touch with what is happening across the country. When someone like Richard Donnell, the Director of research and insight at Zoopla, conducts a Q&A session on their website, we pay attention.
What will happen in the next few months?
Richard was asked what lies in store for the housing market for the rest of this year, and he gave a strong answer.
Richard said; “Recessions typically impact sales volumes more than house prices. The number of sales is already low by historic standards and we expect it to be 20% lower this year as a result of the housing market being shut for almost two months. We still believe that house prices will end the year 2% to 3% higher than at the start. There are a number of reasons why we don’t expect a major fall in UK house prices.”
Richard also said; “Firstly, house prices are rising at low rates and a jump in forced sales seems unlikely. Lenders are supporting existing borrowers and credit is still available for buyers seeking low loan-to-value mortgages. Secondly, unemployment is rising but it appears to be focused on the younger generation who are typically renters rather than homeowners. Thirdly and finally, mortgage regulations restrict borrowers’ ability to ‘bid up’ the price of housing – and therefore limit the downside for house prices.”
What impact has lockdown had on activity in the housing market?
Most people are curious as to the impact lockdown has had on the housing market. Richard responded to this question by saying; “Lockdown has driven unseasonably strong interest, with the holiday season doing little to dampen the strong market conditions. Since restrictions were lifted, homes have been selling at a faster rate across all regions and countries. At a UK level, they are transacting in just 27 days. That’s 31% lower than this time last year.”
This is something we have seen at Stones Residential, and we believe that with the current market conditions in place, sales will continue to take place at a faster rate for some time.
The market is fairing well even though there is a recession
When asked why the market is as strong as it has been for years, even though the country is in a recession, Richard said; “The pandemic has been the catalyst for a lot of movement. It’s led to a once-in-a-lifetime re-evaluation of housing requirements. Both homeowners and renters are reprioritising what they want in a home, resulting in an appetite for more space and changing work and commuting patterns. It has also created a lot of pent-up demand. With half of all homeowners having no mortgage and a large part of the remainder having significant equity in their property, there’s a lot of flexibility for people to move.”
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.