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Summer Market Report: The Bright Road Ahead

Posted on: Monday, June 15, 2020

With the spring market showing signs of improved consumer sentiment following the election result, 2020 was expected to be the year the property market regained the traction lost due to Brexit uncertainty, with promising figures in the first quarter confirming as such. During spring, the market experienced annual house price growth of 2.1% and an annual increase of 3.7% mortgage approvals during the first quarter of this year, despite the fall in March. The strongest growth in the market was seen in London and South West. 

The housing market was paused once lockdown began in the UK on 23rd March. This resulted in a -9.8% drop in transactions in March, with April volumes around half of the level they were last year. On 11th May, the Government announced the UK COVID-19 exit strategy and England's housing market began its return to business on 13th May. 

Many estate agents saw a surge in enquiries on the first day of reopening in England, with Rightmove reporting 5.2 million visits to their site, a 4% increase from the same day of 2019. This flurry of activity and release of pent-up demand will help the market on the road to recovery. Long-term growth expectations are similar to pre-COVID levels, with average growth of just over 2% per annum over the next five years according to RICS. 

During the lockdown, agents across the UK reported that demand in the rental market weakened with fewer landlord instructions. Despite this, rents increased by 1.5%, however, it can take time for supply and demand pressures to show. Based on the recent statistics, it is possible to see some rental falls in the coming months, but the long-term projections stand at 2.5% per annum over the next five years.

Although it is too early to understand the magnitude of the imact from COVID-19, house prices have been relatively stable. There is a good balance between supply and demand and banks are still lending with fixed mortgage rates at an all-time low based on interest rates of 0.1%.

COVID-19 has left a legacy when it comes to property buying patterns, with the importance of outdoor space increasing. Currently, only 66% of flats have access to private outdoor space, in comparison to 97% of houses. We are likely to see a shift in building design and the premium already established for homes within proximity of green space could increase. 

Contact us today

Get in touch with your local Guild Member to see a full copy of The Guild's summer regional market report and for further guidance on the home moving process.

 

 

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Customers Say

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We really wanted a purchase to go ahead through Wilkes-Green and Hill as you have been the most helpful agent we have ever come across (including Newcastle, Glasgow and Carlisle cities!) and we are sorry that the time you have expended on us has been in vain...

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Thanks to you all for making the sale of Mum's house so easy at a difficult time for myself and family...

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I've bought and sold many places - leading to a low opinion of estate agents! Until you came along! Many thanks for your professionalism, hard work and continued efforts. They are very much appreciated.

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Thanks for all your hard work and brilliant service!

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It's not very often that you come across someone so helpful and enthusiastic that it makes you smile!!Moving house was supposed to be stressful; thanks for making it so easy!! Your professionalism and hard work is much appreciated.

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You have handled the situation admirably, as have your staff...

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I would like to say again how grateful I am for all of your support since you took the property on to your books and all of the advice you have given me which was often above and beyond the call of duty. Your professionalism throughout has been excellent...

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A very big thank you to all of you for really fantastic service...definitely 5-star!

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...for your attention to detail and always returning my calls...

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...we would like to thank you, Gayle, Amanda and Tracy for all your help and kindness over the last 5 years, which has helped us tremendously. We also appreciate that you have gone the extra mile in several circumstances knowing that we were so far away...

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Having recently used 3 other agents I can say with hesitation that WGH are in a different league, very professional, efficient, polite and friendly. 3 other agents have marketed my house which only achieved 2 viewings in total. I had 2 viewings with WGH in the first week which I put down to their marketing skills

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WG-H couldn't have been more helpful, queries were answered immediately by professional courteous staff , and they even offered to turn the heating up in our holiday house when the weather was particularly cold. Gayle would ring us during an evening to respond to our query , if required and Amanda even paid a cheque into our bank account. What a lovely company to work with.

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Adrian and his team have been amazing from start to finish. Very polished team, with the highest standards. I have recommended them to friends and family who have also been impressed by them.

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