Buyers ignore lockdown

Research from estate agency Knight Frank has shown the UK property market rapidly recovered from the impact of England's second lockdown in November.

 

There was no fall in prices after restrictions were introduced and, following an initial dip, buyer and seller numbers recovered strongly. As the second lockdown in England began in the week of Nov 8th the number of new prospective buyers dropped to just 10 per cent of the five-year average, but by the end of the month had rebounded to more than 60pc of the average. 

 

New instructions to sell fell at the end of October, but during the November lockdown listings for properties in London and the countryside rose. Data released by Knight Frank showed that sale instructions for London properties climbed substantially in November hitting almost 80 per cent of normal levels.

 

Knight Frank's data showed that the property market is experiencing strong demand for country homes as buyers demand green space, with city centres still straggling. Top areas for viewings during England's second lockdown were Winchester and Harrogate, while the top London areas in November were all family residential areas with large parks such as Chiswick, Barnes and Dulwich.

 

In November UK buyers paid 96.6 per cent of the average asking price, up from 93.9 per cent the previous month. The market is still benefiting from a temporary cut to stamp duty, and estate agents were free to stay open and surveys allowed to go ahead, unlike during the initial lockdown.

 

These figures are a stark contrast to the first lockdown when the market all but collapsed.

 

Tom Bill, head of UK residential research at Knight Frank, said property prices have also held strong over the past month. "While prices dipped during the first national lockdown, there was no such effect in November."

 

Prices broke records following Chancellor Rishi Sunak's stimulus, however, the stamp duty tax break is due to end in March, and fears are growing over a rise in unemployment when state assistance for businesses is withdrawn. Many agents fear the market may falter next year.

 

Mr Bill said, "Nerves are rising ahead of the end of the furlough scheme. The struggle faced by the conveyancing system to process the high number of deals agreed this year looks likely to continue, and calls to extend and taper the stamp duty holiday will grow louder at the start of 2021."

 

 

 

E&K Solicitors

Rusholme