Positive property prices showing strength in post-lockdown recovery
Despite initial concerns for the property market, it appears there has been an upturn following lockdown as property prices notch up their highest monthly rise since February 2004.
According to new figures from Nationwide, house prices have hit an average of £224,123 - a rise of 2% in August and the biggest month on month increase in 16 years. What’s more, prices have risen 3.7% when compared to August 2019 and Nationwide’s research has also shown that demand for housing is 34% higher in what has been described as a “post-lockdown surge”.
Whilst this will be welcome news for investors and those who have waited patiently for a buoyant housing market to help plump up some much-needed equity to upsize, experts believe there could be more change on the horizon.
Nationwide claims this pent up demand has come about as a result of the market stalling earlier in the year. Additionally, the Chancellor’s recent Stamp Duty incentive will have been tempting for those who had already been considering a move and now deciding to take the plunge.
When asked if there could be another dip in the market as concerns mount over job losses, Nationwide’s Chief Economist, Robert Gardner said that where pent up demand is coming through, this is where decisions to move before lockdown are progressing, however, he also added that “behavioural shifts” will also impact the numbers as people reassess their housing needs after life in lockdown.
It remains to be seen whether this can be sustainable for the long term, but for those looking to sell up, now could be a great time to get the best price for your property.
If you would like some advice relating to a property purchase or sale contact Downs Solicitors to see how we can help.