The last few months have been an extraordinarily challenging period for the UK property sector as the coronavirus outbreak brings the economy to a standstill.
Nationally, house prices fell 0.2% month-on-month in March as the lockdown wiped out housing market activity. Transactions plunged over 50% annually in April and May as viewings ceased and sales collapsed.
In London, prices dropped 2.5% in Q1 with the lockdown exacerbating declines. By contrast, the North saw smaller falls as its lower prices provided resilience.
In our region of Essex, activity has ground to a virtual halt. Prices are holding steady for now but sales are down over 60% as people self-isolate at home rather than view properties.
The government has introduced some support measures to aid the property sector through the crisis. Initiatives like mortgage payment holidays and the job retention scheme have provided a temporary lifeline for stretched home-owners and real estate businesses.
While mortgage rates have hit record lows, providing a glimmer of hope for buyers, lenders have also tightened criteria. Meanwhile, construction has stalled and surveys show buyer demand has evaporated.
As the country begins tentative steps to ease restrictions, there are hopes of some normalization in the property sector. But a full recovery looks unlikely until the economic outlook improves significantly.
The lockdown period has been an exceptionally tough time for the housing market. While government support has helped, the sector still faces major challenges in coming months as the full impact plays out. For now, the focus is simply on getting through this crisis.
Here's hoping for brighter days ahead once we emerge from this extremely difficult period. Stay safe and well, everyone.
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