As January draws to a close, the property market has inevitably slowed amid the latest lockdown and ongoing economic uncertainty. However, the accelerating vaccine rollout programme provides real cause for optimism.
Nationally, prices dropped 0.5% month-on-month per early data. Mortgage approvals also eased as physical viewings ceased temporarily. Yet there are signs of resilience and pent-up demand ready to be unleashed.
In London, prices fell 2.2% in January and urban demand remains constrained for now. However, online searches by buyers are rising and could quickly convert to sales once restrictions lift.
The stamp duty holiday extension in the Budget boosted sentiment in cheaper regions like the East Midlands. While currently muted, transactions should strengthen rapidly once the market reopens.
Here in Essex, new sales have slowed but prices show stability as the market braces short-term. There is still anxiety and uncertainty amid the lockdown, yet the mood seems calmer than last spring.
The accelerating vaccine rollout, additional government support and low mortgage rates provide grounds for optimism. While challenges remain this quarter, there is growing hope of a significant rebound by spring.
The property market is proving its resilience once again during an extremely tough winter. With the measurement marking a year since the pandemic hit, we can now look forward with far greater confidence. A brighter future awaits.
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