As October draws to a close, the UK property sector continues to lose momentum as the pandemic economic hit intensifies. With new restrictions in place, the outlook for housing has turned bleak as we head into winter.
Nationally, house prices declined 0.9% month-on-month in October according to early indicators, as rising COVID cases and tightened measures hurt demand. Mortgage approvals also remain around 20% below last year's levels despite ultra-low interest rates.
In London, the weakness at the upper end persists, with prime central prices now down almost 15% annually. Commuter belt regions like the South East are faring relatively better, but sales are still muted as caution reigns.
Here in Essex, the mood has become more downbeat as the second wave hits. Transactions retreated in October compared to September, indicating buyers are once again hesitant to commit as risks intensify.
With the furlough scheme over and predictions of soaring unemployment, households look set to rein in spending. On top of this, the new lockdown bans physical viewings, grinding activity to a halt.
While the property market has shown resilience so far, the headwinds now mounting pose a real threat, especially if restrictions persist into 2021. All eyes will be on the extension of government support over winter to prevent an even steeper decline.
As Halloween approaches, an eerie end to the year seems in store for housing. Let's hope the market isn't spooked for too long and the spring brings renewal. In these difficult times, look out for each other and stay safe.
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