Seths August 2020 Property Market Report
The property market is starting to come back to shape in England since the lockdown in March. Sales figures are increasing across the board, according to Zoopla. At Seths, we are also seeing an increase in sales figures, with properties of all values selling fast. We recently sold a property which we listed for £1,500.000 in less than one week.
There are strong signs that many households are assessing the market for when is the best time to list their property. With the recent Stamp Duty announcement, this has certainly bought them to consider selling and moving up the property ladder.
With sales numbers increasing across the property market, sales between January and July are still 20% lower than the same period in 2019. Overall transaction levels are around 15% lower this year in comparison to last year. Although a substantial decline in figures, we must say a modest one than the property market was expecting at the start of the lockdown in March.
Property prices are remaining higher than expected, and this is due to the higher levels of activity and demand in the property market.
Auction houses across the UK are also seeing a record level on auction lots, as many of these lots are going well above what they would have previously sold for. This is mainly due to supply not meeting demand. In turn, the number of available properties in the market is outstripped by the number of buyers.
Demand vs supply is putting pressure on prices rising across England, with May seeing a rise in property prices by 2.4% and June witnessing a rise of 2.7%.
Property prices across the Midlands have also seen a rise due to supply not meeting demand, and this trend is expected to continue throughout the year. Developers across Leicester are not only continuing to build on their existing developments, but they are also starting new developments ahead of schedule due to the scarce supply of properties in the market.
Stamp Duty Holiday has been well received across the market with London and the South East seeing the more significant benefit due to high property prices across these regions, and where buyers can make bigger savings. Across Leicester, buyers are starting to benefit from the scheme, in turn increasing the number of properties coming into the market.
For the rest of the year, I expect property prices to keep increasing between 2-3% with demand outstripping supply. Although more sellers are bringing their properties into the market, and developers are starting to build new developments ahead of schedule, the balance between demand and supply will still take some time to settle. I project this to go well into next year, pushing property prices up.