Call for your free quote 0800 955 0058

House sales strongest for five years and not losing momentum

28 Aug 2020 | News|House Prices

Buyer demand is up a third this year and no signs of losing momentum with house sales 76% higher over the five year average.

The strong rebound in the housing market since lockdown has seen demand up 34% over the same period last year and house sales 76% ahead of the five year average according to the Zoopla UK House Price Index.

More demand from first time buyers and home movers has increased the number of sellers with the supply of new homes to the market 50% faster than last year.

Even so the amount of inventory available to agents remains 3% lower than last year and this is helping house prices to remain high while demand is strong.

City house prices expected to rise

House price growth in cities remains steady and expected to rise during 2020 with 16 out of 20 cities recording growth of 2% or more and up to 4% for Nottingham and Manchester.

This table from Zoopla is for the leading ten city house prices and growth over the year to July 2020.
City Current price Annual growth
Nottingham £158,500 4.4%
Manchester £174,100 4.0%
Leeds £169,900 3.6%
Liverpool £122,900 3.3%
Edinburgh £229,100 3.0%
Leicester £183,300 3.0%
Birmingham £167,700 2.9%
Bristol £279,900 2.9%
Sheffield £139,000 2.8%
Cardiff £207,900 2.7%
UK house price inflation is being supported by a combination of strong demand and sales as buyers consider their housing needs for space with work expectations.

Higher prices may give remortgage buyers the opportunity to release capital which they can use to improve their home such as an extension to provide more room when working from home.

There has been a slowdown in average city house price rise from 2.7% in June to 2.5% in July and the three-month rate has halved to 0.6%.

Zoopla does not see a major decline in house prices due to the Covid-19 induced recession and although demand in August has softened the housing market momentum is expected to continue.

Not all houses for sale are moving quickly and buy-to-let investors may offer prices at a significant discount to asking prices to improve rental yields after interest payments.

Although the lockdown has seen the economy contract rapidly the key for a buoyant housing market is the level of unemployment, household income and access to mortgages and rates.

Homes selling faster than last year

The average time to sell a property since lockdown is 27 days which is a 31% fall compared to the same 3-month period last year.

Buyer needs and priorities have shifted to larger houses rather than flats with three-bedroom homes selling the fastest in just over 24 days compared to flats taking 31 days.

Slowest property to sell is a one-bedroom flat at 34 days and two-bedroom flats at 32 days with three-bedroom houses the most popular with home movers in London and the South East but in short supply.

The times to sell have reduced the most for larger homes with a four-bedroom house selling in 29 days compared to 45 last year and a five-bedroom house is selling in 32 days down from 48 days.

According to Zoopla, there are an increased number of sellers in wealthy demographics with half of all homeowners having no mortgage and a large proportion with equity.

For older homeowners looking for a change of lifestyle from the city to the coast, equity release buyers can use a lifetime mortgage to buy a more expensive home.

What are your next steps?

Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth to consolidate debt, home improvements or gifting to a family member.

At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, property value tracker chart and mortgage monthly costs calculator.

 


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%

The latest mortgage news


11 Sep 2020

London first time buyer costs almost double in a decade

Property prices for first time buyers in London rise by 98% over the decade and deposits are more than double the national average.

07 Sep 2020

Quarter of home buyers rely on Bank of Mum and Dad funding

Homebuyers are more reliant than ever on the bank of mum and dad funding nearly a quarter of all housing transactions.

28 Aug 2020

House sales strongest for five years and not losing momentum

Buyer demand is up a third this year and no signs of losing momentum with house sales 76% higher over the five year average.

17 Aug 2020

Record high house sales as moving home replaces summer holidays

The number of house sales have reached a record for the last ten years as summer holidays are replaced by moving home.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

  • WARNING

    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2020 © London City Mortgages.
    Website designed & developed by Spyre Media