Astrum London

Broadly in line with seasonal expectations and no real surprise given the breathtaking activity and demand-driven price hikes since the spring lockdown, asking prices have dipped 0.6% across England and Wales since last month, according to the latest figures released by Home.co.uk.
This timely dip, apparent in all regions, will be reassuring for most property market observers. A sense of caution on the part of vendors in setting the asking price is an indication that the market has not overheated, and thereby reduces the chance of larger corrections in 2021. As in any market, seasonal dips and corrections are vital in rebalancing supply and demand.

News of the first COVID vaccine rollout is welcome and buoys hopes for a wider economic recovery. Indeed, in the wake of the devastating lockdown measures imposed to control the virus, there is a clear sense of urgency in the need to reanimate the worst-affected business sectors. The Stamp Duty holiday has certainly boosted property market sales but, alongside that, we are witnessing a refocusing of demand from urban dwelling to more leafy suburbs and the countryside.

In fact, this new trend has created phenomenal upward pricing in corresponding locations and home types, more than matching the surge in supply in most regions. The market restart following the UK’s first lockdown gave rise to remarkable regional price growth, especially in the north (Yorkshire prices are ending the year up nearly 10%). Outside of central London (and other heavily urban city centres), the property market looks to be sailing into calmer waters as we head into 2021.

On the downside, the desirability of central London’s bricks and mortar has taken a severe tumble in the wake of the first COVID lockdown. Consequently, most urban locations are now experiencing a period of price rediscovery. Demand in more central parts of London has failed to keep up with supply in both the sales and rental markets over recent months.

This certainly bodes ill for the capital region in 2021 as, while rents are collapsing in many boroughs, residential property is looking increasingly overpriced despite the price falls already observed. The typical price of a flat within a ten-mile radius of the centre of London has fallen 5% over the last year and, with rents falling more than 20% in central boroughs, we expect further price falls in 2021.

The fact that the market overall shows such vigour and significant price growth as we come to the end of what is one of the most economically devastating years in history is both encouraging and reassuring. In short, 2020 could have been a lot worse. Moreover, the current overall health of the property market is a testament to the hard work and determination of thousands of actors in the industry. Their sterling efforts in the most trying of circumstances have got the market back on its feet. As we look forward to 2021, we expect to see the market continue to adapt to the new pattern of buyer and renter demand.

The annualised mix-adjusted average price growth across England and Wales is currently a most remarkable +4.7%; in December 2019, the annualised rate of increase of home prices was -0.3%.

Source: https://www.propertyreporter.co.uk/property/oversupply-in-london-continues-as-house-prices-dip-in-december.html

House prices hit a new all time high in July as the property market gradually reopened, after being put on pause during the coronavirus lockdown.

According to the latest Halifax House Price Index the average price of a home was £241,604 last month, 1.7% higher than June’s £237,834.

Prices are 3.8% higher than July 2019.

Halifax managing director Russell Galley said pent-up demand and a lack of available houses had combined to push up prices.

The government’s cut in stamp duty had also boosted buyers’ enthusiasm, he said.

Last month Chancellor Rishi Sunak announced a temporary suspension of stamp duty on property sales up to £500,000 in England and Northern Ireland.

These latest figures mirror recent figures from the Nationwide Building Society, which showed house prices bounced back in July, climbing 1.7% during the month.

“The latest data adds to the emerging view that the market is experiencing a surprising spike post lockdown,” said Mr Galley.

But he warned that while the prospects for the housing market were brighter than might have been expected three months ago, the effects of the pandemic were still creating a great deal of long-term uncertainty.

“As government support measures come to an end, the resulting impact on the macroeconomic environment, and in turn the housing market, will start to become more apparent,” he added.

This view was echoed by Anna Clare Harper, author of Strategic Property Review, who said that the Halifax findings reflected current confidence in the economy:

“What we can’t forecast is what happens next: economically, and in policy.

“What we can predict accurately is that these two factors will prove fundamental to the future of the UK housing market.”, she said.

Another property specialist, Tomer Aboody, director of MT Finance, called on the government to consider further stamp duty relief on properties selling for more than £500,000 as he stressed the importance of the sector to the UK economy.

“Now more than ever the housing industry should be looked upon as the foundation upon which to keep the UK working.”

Source: https://www.bbc.com/news/business-53693149