Spike in Demand for Housing Since End of Lockdown

A report from Zoopla shows that demand for houses has jumped since the end of lockdown.

Buyers flooding back into the market have led to properties selling at a much faster rate than before the start of the pandemic.

Properties now spend just 27 days on the market from the day they are listed until the day they are snapped up. For the same time period back in 2019, properties took 39 days to find a buyer from the day they were put up for sale.

Large homes out in the countryside are most popular amongst buyers, whilst the slowest segment of the market are now flats in urban areas.

“Four- and five-bed houses are selling 33% faster than in 2019, as buyers prioritise more space and widen their search criteria – migrating away from the more expensive cities, suburbs and commuter belts while enabling their budgets to stretch further,” said Zoopla. “Meanwhile, flats are taking the longest time to sell.”

Pent-up demand since the lockdown, and chancellor Rishi Sunak’s stamp duty holiday for properties up to £500,000, has driven sales numbers up 76% higher than the five year average.

The UK property market is faring much better than the UK economy on the whole. According to OECD figures, in the second quarter of 2020 the UK’s economy shrunk more than any other country in the developed world.

Zoopla’s Richard Donnell said: “The ‘once in a lifetime’ re-evalution of housing requirements on the back of the lockdown is a counterweight to the impact of the recession on the UK housing market.”

Forecasts from Zoopla now anticipate a 2-3% increase in house prices by the end of the year: “Extensive government support for the economy and labour market, together with support for mortgage holders, has reduced the number of forced sellers and limited the downside for house prices. While the economy has contracted sharply and unemployment is rising, consumer spending has rebounded and various surveys of economic activity are pointing to a wider rebound in the economy.”

On Wednesday, the Financial Conduct Authority issued new guidelines urging mortgage lenders to continue showing leniency to borrowers who are still in financial distress despite coming to the end of their payment holiday.

Quilter Financial Planning’s mortgage expert, Charlotte Nixon, said: “Assuming that the payment holidays are not extended past October, the guidance is clear that the onus is still very much on lenders to help customers get through this difficult period.”