Experts predict property market will bounce back when lockdown is lifted

House prices in Britain could rebound when the coronavirus lockdown eases, Nationwide has said. Prior to the pandemic lockdown, which has had an enormous impact on the property market, house prices had grown at the fastest pace since 2017.

According to data by Nationwide, in April this year, property prices in Britain rose 3.7% on an annual basis, making it their strongest rate growth in 26 months.

The growth equated to the average cost of a home rising from £219,583 in March to £222,915 in April. The data is based on the number of mortgage approvals in April, which had been submitted earlier. This explains why growth occurred, despite lockdown.

Robert Gardner, chief economist at Nationwide, commented on the solid performance of the housing market prior to the pandemic.

“Activity levels and price growth were edging up thanks to continued robust labour market conditions, low borrowing costs and a more stable political backdrop following the general election,” said Gardner.

While the COVID-19 pandemic and subsequent lockdown have adversely affected the property industry, some experts are predicting there will be a sharp recovery in house prices when lockdown measures are lifted.

Gardner cites the economic measures put in place to help support businesses, which includes £330 billion in business support and the government’s Job Retention Scheme grants. According to Gardner, such support could enable house prices in Britain to bounce back by keeping borrowing down.

“The raft of policies… should set the stage for a rebound once the shock passes. These same measures should also help ensure the impact on the housing market will ultimately be much less than would normally be associated with an economic shock of this magnitude,” said Gardner.

Throughout lockdown, Auction House London has continued holding property auctions via remote streaming. Despite no physical viewings, our May auction saw 88% of lots sold and raised £10.6m on behalf of our clients.

If you are interested in buying or selling property at auction, get in contact with the Auction House London team.