With renters, landlords, buyers, and sellers being advised to delay their home moves if possible and not to allow new viewings, the housing market has unsurprisingly ground to a halt.
New property listings have plummeted, transactions have nosedived, and prices are expected to drop sharply, as the lockdown imposed to curb the spread of the Covid-19 virus has a detrimental impact on the housing market.
Prior to the existing crisis, the market looked in good shape and showed considerable potential for growth this year.
Confidence was returning, prices were increasing and momentum was on the rise, with the mix-adjusted average home price for England and Wales growing to 1.8% year-on-year; the highest such growth seen for two years. But this has now dropped to 1%, and is likely to fall further.
Low and falling stock levels will have a negative impact on the sales market, while also impacting on the Private Renting Sector (PRS).
The letting market has seen stock levels drop 14% year-on-year, with 21% fewer new rentals now entering the market.
This squeeze in supply is having a dramatic effect on rents in many regions. Rents in the Greater London area are now up 9% year-on-year and some boroughs are seeing annualised hikes of around 20%, according to Home.co.uk
We do not yet know when the market will have the all-clear to proceed, but, when it does, the imbalance between future supply and demand could have clear implications for significant upward price adjustments.
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