UK house prices dip in April as coronavirus lockdown brings market to standstill
UK house prices dipped in April as property market was brought to a standstill by the coronavirus lockdown, however property expects expected buyers and sellers to return “in droves” when restrictions are lifted.
UK house prices fell 0.6 per cent in April compared to the previous month, dropping to an average price of £238,511.
On an annual basis, house prices increased 2.7 per cent compared to April last year, according to the latest Halifax data. The annual growth rate slowed from three per cent in March.
Russell Galley, managing director at Halifax, said: “The impact of measures taken to curtail the spread of coronavirus started to filter through to the housing market in April, with average prices falling by 0.6 per cent compared to March, and the annual growth rate easing to 2.7 per cent.
“With market activity currently almost at a complete standstill, the limited number of transactions available means that calculating average house prices has inevitably become more challenging.
“This will lead to a great deal of volatility until more data becomes available.”
Galley said uncertainty will remain at least until the UK’s coronavirus lockdown is lifted.
“The future remains uncertain and based on our current forecasting we expect short-term headwinds to house prices, although we maintain our underlying confidence in the health of the housing market in the longer term,” he said.
UK house prices: Buyers and sellers to bounce back after lockdown
Benham and Reeves director Marc von Grundherr said the true extent of the damage to UK house prices may take months to become clear.
However, he added that when lockdown restrictions are lifted, buyers and sellers will return “in their droves”.
“The UK property market is one of the cornerstones of the economy and releasing it from the shackles of the current pandemic must be a priority if we are to ensure it remains in good health,” said Grundherr.
“Although the damage appears minimal at present, it will take a few months before the full extent is clear in any market data.
At present, our hands are tied and we simply don’t have the operational capacity as agents to service the industry.
“This must be the first focus and once we are back up and running, buyers and sellers will return in their droves as we remain a nation of aspirational homeowners.”
Former Rics residential chairman and estate agent Jeremy Leaf also said pent up demand could be released when lockdown restrictions are lifted.
Leaf said: “It is only when you look behind the figures that a more interesting picture emerges – in other words, what we are seeing on the ground are previously agreed sales proceeding to exchange and completion without price renegotiation and a buildup of browsing interest as buyers and sellers ready themselves for easing of restrictions.
“Buyers and sellers are also taking advantage of interest rates remaining low for the foreseeable future.
“Overall, we are being told that transactions are stalled and will be revisited as soon as it is safe to do so and particularly surveyors and removers are able to gain access to properties.’