UK Housing Market Tentatively Emerges from Lockdown Slumber
As June draws to a close, the UK property sector is slowly beginning to show signs of life after months of lockdown dormancy. But the outlook remains highly uncertain.
Across the country, the reopening of estate agents and relaxation of restrictions has allowed viewings to resume and sales to begin trickling through. However, activity levels are still massively down on pre-pandemic norms.
In London, buyer demand appears fractionally stronger than other regions as some take advantage of lower prices. However, transactions remain around 50% below usual levels for this time of year.
In Surrey and areas west/southwest of London, demand also seems to be returning slightly quicker, possibly due to larger properties with green space being sought out. But the market remains extremely subdued here as well.
Here in Essex, we’ve seen a slight uptick in interest from pent-up home-movers as the initial constraints ease. But most are still focused on their health and finances rather than moving. Construction is also only restarting slowly.
On a positive note, record low mortgage rates are helping improve affordability. Government incentives like the stamp duty cut, due to be announced this week, could also provide a boost when implemented.
However, rising unemployment expectations continue to weigh heavily on market sentiment. Overall, the property sector looks set for a prolonged and bumpy road to recovery. A degree of stabilization appears underway, but it is likely to be many months before any real strength returns.
For now, as agents reopen their doors, the focus is on safely restarting the sales process after such an unprecedented standstill. Activity seems unlikely to rebound significantly until the economic fog lifts further down the line.
Let’s hope the market continues taking small steps forward after this exceptionally challenging spring. Recovery may be slow, but the green shoots of optimism have at least begun to emerge.
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