Housing market has its best ever week outside London as buyers flood back after lockdown
The housing market had its best ever week outside London when buyers flooded back after lockdown, according to figures out today.
Prices in June were higher than in March despite dire forecasts of a collapse.
The market is bouncing back after viewings were put on hold for eight weeks. A total of 40,000 sales have been agreed since the market reopened a month ago.
Streets ahead: The market is bouncing back after viewings were put on hold for eight weeks
Offers accepted outside of London were the highest on record and more than 50 per cent above the five-year average, according to Knight Frank.
House prices have also risen by 1.9 per cent – equivalent to £6,266 on an average home – since March, according to Rightmove.
The website said it had recorded its busiest ever ten days in May and June. The figures are reflective of two months of pent-up demand coupled with record low interest rates.
They counter doomsday predictions, made in early April, which said the virus would knock 13 per cent off prices by the end of the year – equivalent to £38,000 for the average home.
Damian Gray, head of Knight Frank’s Oxford office, said: ‘Enquiry activity has been extraordinary. I’ve never been contacted by so many people to live outside London.’
Andy Shepherd, chief executive of Dexters, said: ‘We’re tremendously busy.’ Rightmove director Miles Shipside said ‘there are no signs of panic selling or even a price dip.’
After lockdown, the number of new prospective buyers is also increasing. For markets outside London in the week ending June 6, the figure was the highest since May 2018.
The average discount to the asking price for sales outside London is 1.2 per cent since the market reopened, compared with 5.5 per cent in London, according to Knight Frank.
House prices outside of London are proving more resilient in part because of a ‘trend for more buyers to seek outdoor space’.
Lockdown has made buyers re-evaluate what they want from a house, agents said, and workers believe they will make fewer daily journeys into city centre offices.
Prices have also remained steady as fewer houses are available – with approximately 175,000 ‘missing sellers’ in the eight weeks of lockdown.
Later in the year, prices will be determined by the depth of recession and level of unemployment, experts added.