Following the re-opening of the housing market, Zoopla’s Cities Index Report reported an 88% spike in housing demand, which was to be expected. This figure is 20% higher than at the start of March. However, there was a slight reduction in the annual growth rate from March (+2%) to April (+1.9%), a decline which may become more pronounced in the upcoming months as the housing market adjusts to its new ‘normal’.
Meanwhile, promisingly, 60% of potential movers surveyed shared that they were pressing ahead with their property hunt, 22% reported not having been directly impacted by COVID, and the remainder said they would resume their search as soon as possible.
Zoopla reports that longer-term demand, following this spike, will be determined by:
- How many of the 373,000 stalled transactions progress to completion
- The availability of higher loan-to-value mortgages
Ultimately, the report predicts that despite the uncertain outlook, pricing levels for deals agreed pre-lockdown will resume where they left off in March.
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