Unprecedented surge in property sales across England
The real estate market is seeing a recovery in sales akin to the pre-COVID levels of early this year. This is due in part to the easing of lockdown measures. Property listing site Zoopla notes on the rising numbers.
While news last week said house prices across the United Kingdom were "falling at a rate faster than the financial crisis of 2009", reports are looking more hopeful now. Effects of the last few months are causing demand and firmer price of sales. Compared to June of last year, the asking price is currently at 6% higher.
Zoopla research director Richard Donnell comments:
"Lower asking prices for homes sold over the lockdown period may drag down indices over May, but this new data suggests house price growth is set to remain positive in the next two months."
London Property Sales are lagging behind
However, things aren't looking up yet in the capital. A lag in property sales in London has been attributed to many workers opting to choose to live outside of the city. Another possible reason for buyers looking to move outside is the reliance on public transport. It has become harder for many to travel. Work from home options is more viable now than before.
Even though the market has been open for many weeks, property sales in London have remained at 24.8% This is a lower number than that of March before lockdown measures were imposed.
Mr Donnell, while hopeful of the rise in numbers cautiously adds:
"The charts are off the scale but I do think this is a one-off surge in demand, a temporary jump... No one truly knows what the economic impact [of Covid-19] is going to be. The housing market is purely an extension of the economy and I am very cautious about the second half of the year."
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