Published: 27/05/2020 By Phil Parsons
Demand for housing in England has surged above pre-lockdown levels, with buyer demand rocketing 88% in the week ended 19 May.According to the latest UK Cities House Price Index by Zoopla, demand was 20% higher than the start of March, with the noted rebound coming two weeks after the government reopened the property market.
Following the recent suspension of the housing market, the property group said that a return of “pent-up demand” was to be expected, “especially given the strong start to the year”.
Nonetheless, Zoopla warned that this rebound in demand is expected to be “short-lived”, with projections for a major decline in economic growth and rising unemployment in light of the ongoing pandemic.
Zoopla also noted that recovery in London is “lagging behind” as buyers instead look to commuter towns. Instead, demand has rebounded faster in cities along the south coast and in northern England.
Looking ahead, Zoopla said that its latest report identifies “two distinct aspects for consideration”. The first is how many of the 373,000 stalled sales make it to completion, and the second is how much the demand for homes “holds up” and converts into new sales.