Current housing market prices remain at the highest levels. However, analysts predict that the lockdown may create the prices to reach a peak. In the month of September, the house price growth was 7.3% high than last year September. This was the strongest growth since June 2016.
As per Nationwide, in the month of October, the annual price growth is 5.8%. Even though the total amount of completions in 2020 year to date shows the loss of activity since the pandemic as per HMRC records, residential property transactions have returned to the normal levels.
In the month of September 98,010 transactions has been completed which is 21.3% higher than August 2020. This had led to the recovery of transactions which was lowest at 42,000 recorded in the month of April 2020 due to the pandemic. (Savills Research, October 2020)
Since September 2017 highest number of mortgage approvals were reported in the months of September and August. September recorded approvals of 91,500 and August recorded transactions of 85,500.
As per RICS survey, there was an increase of 52% new buyer inquiries for the month of September. However, this is reported as a moderation compared to the activity levels in July and August.
As per Land registry data, detached houses have proven to show highest price rises. The statistics depict an increase of 6.7% in the year 2020. The annual price rise for September in South West of England has been doubled compared to the previous month.
The main factor driving the demand for larger properties can be the requirement where people require more outdoor space due to the current work from home conditions. However, when the economy turns back to the standard working conditions, there is more possibility for clients to look for properties that are convenient for travelling.
As per Halifax, the average UK house price has been recorded at £250,000. However, despite the slow rise in property prices in London, average house price in London is £496,000. Also, tenants see an increase of 1.4% in rent for the month of October.
According to IHS Markit UK House Price Index, with a reading of 55.4% in October compared to the reading of 54.4% in September. Even with the pandemic around the corner, these statistics prove that the housing market continues to be in boost.
In Northern Ireland, during the third quarter prices were up by 2.4% compared to third quarter in 2019. The average residential property is at £143,205 with detached house prices showing an increase of 2.6%, semi detached at 2.9%, terraced at 1.9% and apartments at 1.3%. During the third quarter sales of 4,630 has been registered.
Due to the stringent loan requirements and requirements for bigger deposit has been a disadvantage to First Timer Buyers. As a result, majority of transactions has been carried out by existing home movers.
Analysts predict the housing prices to increase across all regions during 2020 and expect no growth in 2021 due to the expiration of current benefits offered by Government. However, 2020 has shown higher growth than anticipated.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.