How is the coronavirus pandemic affecting house prices?

12th July 2021

How is the coronavirus pandemic affecting house prices?
As we now find ourselves in August, with more than half the year over, it’s fair to say that so far 2021 has been a little hectic.  Given we are still in the midst of a Global pandemic it seems extraordinary to be reporting an unprecedented demand for property and house price increases.  Rightmove’s recent House Price Index reported “for the third consecutive month, the national average has been pushed to a record high”. 

So, will house prices continue to rise? 

Demand for homes continues to outstrip supply.  The consequences of this are that homes are selling at either asking price, or in some instances, above asking price.  Over the last three months, on average, we have sold for 100% of the asking price across all four branches. 

The ‘Race for Space’ continues with significant numbers of people moving from more expensive cities out to the countryside or to the coast.  Again, as a natural migration route for Londoners, areas such as Reigate, Dorking, Oxted and Horley have benefitted from this.  

The recent stamp duty savings and record low mortgage rates have resulted in many buyers increasing their budget just that little bit further, adding increased demand on homes which offer space and opportunity for a change in the Work/Life Balance.  

So where does all this leave the property market for the remainder of the year? Demand is still outstripping supply, but this may settle over the summer.  If this happens we will see a period of price sensitivity develop which in turn will result in a flattening of prices.  A more traditional market is anticipated, but it is likely to see a further upturn in activity as children return to school in September, and then the natural urgency to complete transactions before Christmas. 

In summary, all the fundamentals that support a healthy property market are in place and this is unlikely to change in the foreseeable future. If you are considering selling, now is clearly a very good time to do so, contact us today for a free, no obligation, discussion on how we would tailor a marketing package to suit your needs.