UK house sales at pre-Covid levels after mini-budget shock: Rightmove
BRITISH home sales recovered to within a whisker of pre-pandemic levels in March, representing a recovery from September when the failed economic plan of former prime minister Liz Truss sparked turmoil across markets, a survey showed on Wednesday (Apr 12).
Property website Rightmove said the number of sales agreed between sellers and buyers was just 1 per cent lower last month than in March 2019, as borrowing costs edged down from their leap after the September “mini-budget”.
“The market is remaining surprisingly robust, given the economic headwinds that have affected movers over the last six months,” Rightmove’s property expert Tim Bannister said.
But while the total number of agreed sales had improved from 21 per cent below 2019 levels as recently as January, they remained down 18 per cent when compared with March 2022.
Besides the high inflation rate, Britain’s housing market is also facing the challenge posed by the central bank’s run of interest-rate increases going back to December 2021.
Real estate agents noted a “significant upswing” in buyer demand for apartments of all sizes, with agreed sales rising 10 per cent from 2019, up from a fall of 11 per cent at the start of 2023.
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London had the most pronounced recovery in the broader market, with overall agreed sales increasing 11 per cent from March 2019, and agreed sales of apartments 23 per cent higher.
Robert Sturges, central London area director at real estate agency Chestertons, said demand for apartments was being driven by commuters looking to move closer to their work, as well as by overseas buyers taking advantage of favourable currency exchange rates.
“In the face of rising living costs, some buyers may also decide that a flat is financially more viable than a house at this moment in time,” he added.
Rightmove said a third of properties were reduced from their original asking price, up from 19 per cent last year, although in line with pre-pandemic levels.
The average size of price reduction rose to 6 per cent, or £22,000 (S$36,395) based on the current national average asking price of £365,357, Rightmove said.
Mortgage lender Nationwide previously said that its measure of house prices fell 3.1 per cent in the 12 months to March. This was the biggest annual drop since July 2009. Meanwhile, its rival Halifax reported a 1.6 per cent year-on-year rise. REUTERS
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