You are here: Home - Mortgages - First Time Buyer - News -

House hunter demand spikes but rebound ‘will be temporary’

0
Written by:
27/05/2020
Demand from house buyers in England jumped to pre-lockdown levels after restrictions were lifted earlier this month, but the rebound is expected to be short-lived.

Buyer demand rose by 88% in the week to 19 May, after the market reopened and viewings started again, and was 20% higher than at the start of March, according to online property portal Zoopla.

However, with projections for a major decline in economic growth and rising unemployment, the rebound in demand is expected to be temporary.

Richard Donnell, director at Zoopla, said: “The economic impacts of Covid will grow in the coming months and uncertainty is building. The majority of would-be movers plan to continue their search, encouraged by low mortgage rates and continued Government support for the economy.

“However, we expect the latest rebound in demand to moderate in the coming weeks as buyers and sellers start to exert greater caution. Further support from the Government can’t be discounted and would help limit the scale of the downside risks.”

Cities in Scotland, Wales and Northern Ireland registered less of a bounce in demand as their national housing markets remain closed.

The rebound was also less pronounced in London than other English cities partly because would-be buyers are looking to commuter towns outside the capital in response to Covid.

Meanwhile, a consumer survey by Zoopla found that 60% of buyers in the UK are planning to continue with their search for their next home, with 22% of respondents saying they have not been impacted by Covid-19 and expect to continue unaffected.

However, 40% said they have have put their plans on hold.

Donnell said: “The Covid crisis and 50 day lockdown have created an unexpected one-off boost to housing demand.

“Millions of UK households have spent a considerable amount of time in their homes over the lockdown period and missed out on hours of commuting. Many households are likely to have re-evaluated what they want from their home.

“This could well explain the scale of the demand returning to the market. We need to see more supply come to the market to satisfy this demand.”

Zoopla said new sales agreed in England have increased by 12% since the market reopened in mid-May, while house price growth remained flat over April.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week