Marketing No Comments

Pandemic property boom adds £1.6tn to England’s housing market

The value of England’s housing market has soared by £1.6tn because of the pandemic property boom, according to new research.

The research by estate agency Yopa is based on the number and value of dwellings which shows that the average house price has risen by 25% from £248,097 in December 2019 to £390,602 today.

And the number of homes has also increased by 1.9%, or 459,191, in the same period.

This means that the total estimated value of the property market in England has jumped from £6.1tn in 2019 to £7.7tn today, an increase of 27%.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

‘Doom and gloom surrounding the property market’

Yopa’s chief executive, Verona Frankish, said: “With all the current doom and gloom surrounding the property market, it’s quite easy to forget that we’ve just witnessed one of the most sustained periods of house price growth in living memory.

“So, while higher mortgage rates and buyer uncertainty may have dampened the current rate of house price growth, this reduction is just a drop in the ocean compared to the meteoric increases seen since the start of the pandemic property market boom.”

She added: “To think that the bricks and mortar market across England is estimated to be worth £1.6tn more compared to just a few years ago is quite incredible and it really does demonstrate the strength of the property market when viewed on a long-term basis.”

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

The South East has seen the largest jump

The study also found that the South East has seen the largest jump in the total value of the region’s property market, increasing by £311bn or 28% since the start of the pandemic.

London, despite having lower house price growth than other regions, has added £251.3bn or 19% to the value of its property market.

The North East has seen the smallest increase in total market value, but still added £45bn or 24% to the value of its bricks and mortar market.

At the local authority level, Cornwall ranks top, with £24.3bn or 51% added to the value of the Cornish property market because of the pandemic.

Other areas that have seen large increases in the value of their property markets include Buckinghamshire (+£23.4bn or 40%), Birmingham (+£22.2bn or 35%), Leeds (+£21.4bn or 38%) and North Yorkshire (+£20.1bn or 36%).

Source: Property 118

Marketing No Comments

London and the south buck the trend as mortgage market flattened in Q1

The coronavirus pandemic may have flattened mortgage approvals across the UK but there are still hotspots of activity, UK Finance data has revealed.

A household finance review for the first quarter of 2020 by banking trade body UK Finance shows mortgage approvals slumped on average across the country but still increased in some parts for first-time buyers and home movers.

This suggests there could still be demand for estate agents to tap into now the market has reopened.

The figures show that mortgage approvals for first-time buyers fell across the UK but were up in the south east of England and London by 3% and 5% respectively during March when the market was on lockdown.

There were large drops elsewhere though, with approvals in Yorkshire down 16% and the north of England registering 20% drop.

The data also shows that while approvals for home mover mortgages were down overall, they rose in each month of the first quarter of 2020 in London, the south east of England and Northern Ireland.

Home mover approvals were also up annually in Wales, the south west of England and East Anglia during March but fell by more than 10% in the north of England and in Scotland.

There was some good news for the lettings sector as buy-to-let approvals rose 7% over the quarter.

UK Finance also warned of a modest pick-up in arrears towards the end of the quarter as the Covid-19 pandemic began to impact home owners, but said the level is still lower than a year ago.

The trade body said:

“It is likely that the significant disruption to activity over the quarter is creating some noise in the data and a clear picture of how trends have evolved in different parts of the country should become more apparent in the coming quarters.

“While regional house purchase year-on-year growth shows variances, the picture for the whole of the UK was fairly flat.”


Source: Property Industry Eye