Demand continues to rise... but is supply struggling to catch up?
Many of the forecasts we presented last month are materialising, such as continuing interest in larger homes and growth in prices. We consider the impact of regional lockdowns on extant trends, and summarise the latest data in the super-prime market.
Staggered lockdown measures affecting regional trends?
It is unknown whether regional lockdowns will further affect the market, but a number of disparities have already been emerging in the regional data which may be exacerbated by these latest measures. For example, prices have fallen in the North East this month, by 1.6%, while nationally prices have risen by 1.1%. In Wales, you can expect a 60-day turnaround on your transaction, but in London you’ll only be waiting 48 days. If you’re dealing with a regional move, it may be worth bearing in mind these varying factors over the coming weeks.
Demand continuing to rise ...
As we reported last month, a number of records have been broken thanks to pent-up demand as the market effectively shut down from late March to mid-May. High demand has not fallen, however, and although many of the exchanges taking place in August and September were started pre-lockdown, sales have continued to rise into October. The number of sales reported by agents is 70% higher than this time last year. This is further evidence of the new demand from buyers, who want more space, as well as to avoid the March 2021 stamp duty holiday deadline.
… but supply struggling to catch up?
The supply of new homes is slowly starting to catch up to the massive demand, but agents are still reporting more properties marked sold than for sale. However, sellers may be tempted by revised forecasts – from the tentative predictions of a 2% market growth we reported last month, to Rightmove’s latest prediction that the annual growth in prices will reach 7% by the end of the year. These figures may seem attractive, but agents do warn of being too enthusiastic with listing prices, especially where properties don’t meet the exacting specifications of emerging buyers looking for more space to work from home.
Super-prime total spend is up 16% to £1.13 billion
A robust start to the year has meant annual sales of super prime (+£10 million) properties are largely unaffected. However, Knight Frank analysis has shown that, like national trends, houses with outdoor space are in high demand in the super-prime bracket. Although international buyers may have been deterred by travel restrictions, British buyers have been returning to the UK market. This momentum means that prices are unlikely to fall past the slight discounts we have reported previously.
What this means for you
- If you’re making a regional move, consider the different restrictions’ impact on your turnaround time – take a look at our Sale Ready pack to speed up the process.
- If you’re a buyer, competition is still rising. Make sure you’ve got a proactive team around you to help secure your property.
- If you’re selling, be wary of overestimating your listing price, but prices are generally high.
- The super-prime market is still strong – no further discounts are predicted.
