England’s property market has seen an “unprecedented rebound” in sales since coronavirus lockdown rules were eased, according to Zoopla.
The property listing site said new sales in the UK over the past month were close to pre-lockdown levels in early March. Prices were up 6% on June last year on average, while demand, a measure based on analysis of Zoopla site visits, is up 54% on the start of March.
The figures are for the UK as a whole but reflect soaring activity in England, with house moves still more difficult under stricter lockdown rules in the rest of the UK.
Zoopla analysis released on Wednesday indicates not only pent-up demand while viewings and valuations were restricted, but also that the pandemic has brought “a whole new cohort of would-be movers” into the housing market.
New sales are much higher outside the capital, with Zoopla suggesting more buyers are looking outside London and considering commuting into London.
Richard Donnell, director of research and insight, said expectations of a swift drop in UK property prices as the pandemic has ravaged Britain’s economy appeared misplaced. He said the new data pointed to continued house price growth in the next two months.
But he also said the spike in demand was likely to be “short-lived,” with the downturn eventually likely to “feed through” into market sentiment and activity in the second half of the year.
Bank of England figures suggest prices could fall 16% this year. But widespread use of mortgage holidays, job protection schemes and other government crisis support may also be bolstering the market for now.
Zoopla found sales of higher-value homes had increased most, with transactions up 16% on early March for properties priced at £1m ($1.3m) or more. Better-off homeowners are looking at “trading up for more space or moving to a better location,” according to the site.