PanamaTimes

Thursday, Apr 25, 2024

UK enjoys property sales boom amid Covid-19 pandemic

UK enjoys property sales boom amid Covid-19 pandemic

Britain’s real estate market defies predictions of a house price crash despite coronavirus crisis
Hard-to-sell homes are being snapped up by the hundred as Britain’s booming property market maintains a year-long breakneck sales record.

In areas of high demand, even the most knocked-about and idiosyncratic houses are spending just days on the market once buyers, desperate to grab something, see that predictions of a house price crash are proving off the mark.

“Homes that look like the last turkey in the Christmas shop window are flying off the shelves at the moment,” said property agent Henry Pryor.

While the property merry-go-round screeched to a temporary halt during the first lockdown early last year, the pause did not last. With sales barely slowing over the summer, the data is clear: along with technology, real estate has emerged as one of the pandemic’s boom sectors.

Andrew Wishart, property economist at consultants Capital Economics, said: “With the amount of secondhand stock on the market currently extremely limited, house prices could continue to surprise on the upside.”

There is always the possibility that places like Cornwall and towns along the south coast are in a bubble and prices are about to burst, said Pryor, “but the banks and local agents seem convinced that the momentum will keep prices on the up for a long time yet”.

Mortgage lender Nationwide said its measure of annual house price increases chalked up its second-biggest monthly rise in 15 years in August, putting to bed fears that the end of the government’s stamp duty tax break, which prompted a fall in the number of homes changing hands during July, would bring the market to a juddering halt.

Prices were up 11% on a year ago, said Nationwide, and remain about 13% above pre-pandemic levels, according to official data.

Adding to the feverish activity, which has seen some English agents adopt the well-worn Scottish system of sealed bids amid claims of gazumping, new home builders have battled steel and timber shortages and an exodus of staff following Brexit to construct new homes. Many have seen their profits soar.

Britain’s biggest homebuilder Barratt Developments reported a near doubling of profits over the last year to £812m on Thursday, and said viewing requests for new homes over the next six months were “strong”.

While homeowners may cheer rising prices, the charity Housing Justice said the boom encouraged private landlords to sell up and leave tenants looking for another place to live, and would only add to the longstanding problems facing homeless people and those in the private rented sector.

Wishart said the end of the furlough scheme on 30 September, which is expected to push unemployment higher, posed only a small risk to rising prices.

“The end of the repossessions ban and closure of a mortgage payment holiday scheme had “failed to trigger an increase in homeowner distress,” he said, adding that the only trap-door for prices was an interest rate rise by the Bank of England, which at the moment seems far in the distance.

In May 2020, it was a very different story. The first lockdown meant buyers could no longer view properties except online, sellers took their homes off the market and sales collapsed.

Two months later Rishi Sunak responded to calls for government support by extending the help-to-buy scheme for first-time buyers and cutting stamp duty on homes worth less than £500,000.

Figures for August 2020 revealed a spectacular turnaround. Mortgage approvals jumped from 66,300 in July to 84,700, according to Bank of England figures, their highest level since October 2007.

Recent analysis of the government’s actions by the Resolution Foundation thinktank argued that the £4bn stamp duty subsidy was wasted on sparking a market to life that had already begun to recover and was always going to enjoy stellar growth.

It said ultra low interest rates, the demand for more spacious properties during the pandemic and the pent up savings of those kept in work by the furlough scheme was enough to spur buying activity without extra incentives from the Treasury.

“It’s true that when the first lockdown was eased, most property analysts were gloomy about the prospects for the market, thinking people would hunker down,” said Pryor. “But by June 2020 it was clear that the British obsession with location, location, location was alive and kicking, it was just they now wanted a different location.”
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×