Sep 4, 20203 min read

Latest Market Update

Here's the latest news on how the housing market is performing based on input from Zoopla.

Zoopla's monthly Housing Index confirms that:

there is a +2.5% UK house price growth year on year

activity is at its strongest since 2015. This is driven by two key factors - pent-up demand and a re-evaluation of what buyers want as a result of lockdown

although the UK is in a recession, agreed sales per estate agent in August are 76% above the 5-year average

50% more homes are being listed for sale compared with August 2019

the average number of days to sell a home is 27 days, compared to 39 days last year. For:

3 bedroomed homes, which are the fastest selling of all property types, they take on average 24 days to sell

flats take the longest to sell on average at 32 days

4 bedroom houses are selling faster than the average flat

houses are selling quicker, in fact 33% quicker than in 2019 and when compared to flats. This is as a direct result of homeowners reprioritising their needs for more space.

there’s an increase in wealthier homeowners selling, driving the average asking price of a home up 8% compared with 12 months ago.

The data below highlights how pricing has been affected through various UK recessions and it is notable that for 2020 there is no negative impact on pricing, despite the pandemic and the inevitable consequences this forced on us all. Both the 1990-1991 and the 2008-2009 recessions resulted in housing sales falling by more than 50%!

What's the Outlook?

Richard Donnell, Research and Insight Director at Zoopla, says:

“The next important milestone for the housing market comes in September when schools re-open and the UK starts to get back towards a full reopening of the economy.

“The ‘once-in-a-lifetime’ re-evaluation of housing requirements on the back of the lockdown will be a counterweight to the impact of the recession on housing market activity over the rest of 2020.

“While demand has softened over August, we expect the current momentum in market activity to continue into the last three months of the year.”

Zoopla do not foresee any major decline in UK house prices as a result of the COVID induced recession, based on the following factors:

1. House prices are rising at low rates compared to historic standards

2. Although unemployment is rising, it appears more concentrated in the younger age band, who tend to rent rather than buy

3. The last two recessions saw house prices increase excessively ahead of the downturn, this has not been the case this time round

On the contrary, Zoopla, are of the opinion that house prices at the end of the year are expected to be 2% to 3% higher than at the start of 2020.

Has your Home Been for Sale for More than 27 Days?

If the answer is yes, it's time to take action, otherwise you risk your on-line listing becoming stale or you may even be recommended to reduce the sale price by your estate agent.

Breathe fresh life into your home to attract your ideal buyer. Professional staging will help you achieve this in a number of ways:

1. It will mean your marketing content is superior so your property can be re-launched

2. It will increase the number of buyers who view your property both on-line and in person

3. Buyers will stay longer viewing your property

4. Not only is it likely to result in a sale, your home is likely to sell for more - typically 8% and quickly

How sort style and stage can help

Whatever the size, shape or value of your home, we can maximise its appeal to your target market. We do this by:

1. Understanding your target market and your competition

2. Identifying and tackling head on any red flags that would otherwise put off your target market, either when the buyer visits your property or as part of the buyer survey

3. We then focus on maximising your property's appeal to your target market, in and out with our well proven staging methodology. We have a range of home staging, virtual and property staging services - all tailored to your specific needs.

Professionally staged properties sell for more, typically 8% and sell more quickly, typically up to 3 times faster than a non-staged property - this is evidenced by the Home Staging Association UK & Ireland.

If you professionally stage your home, you will be that step closer to securing a sale.