UK: housing boom after containment, but in London prices fall

The United Kingdom has seen an increase in real estate transactions and higher prices after containment. At least in the provinces, London being sullied by the buyers...

The UK property market has seen mixed developments in recent times. In July, it recorded a "mini-post-confinement boom" with the highest number of sales trade-offs signed in more than a decade, at 37 billion pounds, according to the ad site Rightmove. While London, the capital, is the victim of an exodus that is driving down prices (-2%), a rise is seen almost everywhere else, with records in seven regions, including Devon or Cornwall, in the south-west of the country, according to a study by Rightmove. A migration encouraged by the rise of telework since the containment put in place to fight the pandemic of new coronavirus.

Rightmove notes to the brokers that homeowners or potential buyers are looking for a better quality of life with more space facing the high cost of living in London, where public transport is usually overcrowded. "More than just catching up on demand after the suspension of real estate transactions during containment, there is additional demand because of people changing their priorities after the containment experience," notes Miles Shipside, one of Rightmove´s executives.

With the highest number of sales recorded since Rightmove started these monthly studies, he notes that this "mini-boom" is unexpected to say the least in the middle of summer, at a time "when we usually dive into the pool more than in the real estate market".

The real estate market is also boosted by a moratorium on real estate tax on transactions on properties under 500,000 pounds, announced in July by Finance Minister Rishi Sunak as part of a package of stimulus measures. The market had also suffered in recent years from Brexit-related uncertainties, which had prompted many homeowners or potential buyers to delay their buying or selling decisions.

Source: Capital FR