NH4U Articles

How will Coronavirus affect house prices?

Posted in: Latest News

Coronavirus and House Prices
With the country on lockdown, the property market has come to a stop. This can be very frustrating especially if you have exchanged or completed and now cannot actually physically move. For people thinking about moving or who have houses on the market, the question over house prices being affected and to what degree is paramount. Firstly we would like to reassure our customers that NewHome4U will be opening our doors as soon as it is safe and recommended by the government to do so, in the meantime let’s take a look at what effect we can expect on house prices when the market begins trading again.

How the year started

In the run-up to the general election in December the property market was fairly unsettled, but after the result, January started out well again seeing a 12% increase in the number of sales from the month before. This was thought to be the relief of Brexit finally being over and for a brief while people knowing what was happening in the world. Sadly, but quite naturally, we are now going to enter a significant slowdown as we have an enforced lockdown on sales, marketing and moving. According to property website Zoopla, the prediction is house sales could slump up to 60% over the next quarter if you compare it to 2019 at the same time. Unfortunately, this has meant that there are sales falling through with vendors and buyers alike reluctant to wait things out. The main Zoopla website has seen over 40% drop in the traffic for the week of the 22nd of March. Again, sadly this was to be expected.

What effect does this have on prices?

If we look at the Land Registry’s UK House Price Index, which is the most reliable source for house prices at this time we can see that although there was a 1.1% fall month on month, there was actually an overall 1.3% year on year growth to January this year. Obviously, it is not known exactly what effect this will have on house prices once the restrictions are lifted and people can return to work as normal. Brexit was somewhat of a trial run coincidentally, and as we saw at the time the UK property market remains robust and did not crash so we can accept that the likelihood is the same will apply again. Although we have to acknowledge that world crises such as this knocks consumer confidence it will recover eventually, demand hasn't gone away - but the ability to trade property has been hugely limited due to the understandable restrictions COVID-19 has left us with. The biggest concern for everyone at the moment will be this slowdown, however, it won't be long and we'll be turning to look at how quickly people will feel ready to begin buying and selling once more. When they do, the whole team here at NewHome4U will be on hand and ready to jump into action. Read our guide on how easy it is to sell your home with NewHome4U.

Can viewings take place at the moment?

All businesses with the ability, including estate agents, have to work from home, as they do not fall into the essential key-workers category therefore physical viewings are not possible at this current time. We are still very responsive to enquiries and any questions you may have, along with happily giving you remote estimates on your property value based on information we can get from you remotely, in order to give you that reassurance we're here and ready to get your house sold as soon as it's safe & advised for us all to do so. As soon as things stabilise, we are confident that NewHome4U will be the best award-winning Estate Agent choice for anyone wishing to sell their home in 2020 because we achieve the highest, yet most accurate sale prices to get your home sold quickly.

Do you have any questions? Call us now on 01352 837 837 or email us by clicking here. We look forward to hearing from you and wish everyone well in these challenging times.