Property experts at WeBuyAnyHome – the UK’s leading home buying company, have just released the findings of a new study which examined the effects the coronavirus pandemic had on the UK home buying industry. The research compared sales enquiry figures from January to September 2019, and during the same period this year. The updated data also analyses the industry’s shift in demand during the pandemic by comparing figures from Q1 to Q2 2020.
It seems we could be in for a dip following our mini-housing boom, and a potential decline in some areas may be on the rise.
- Northern Ireland was the most affected region, with a sharp decrease of nearly -77%, followed by Wales and England (-36% and -32% less house sales enquiries, compared to last year figures, respectively).
- Cardiff house sales enquiries decreased by -31.50% compared to last year.
- North England house market is the worst-hit in the UK.
- Pensioners house sales enquiries decreased over 60% during the pandemic.
The study also looks at the correlation between home sales figures and the amount of positive Covid-19 cases registered in the area, as well as factors such as seller demographics across regions, analysing the most common type of sellers in each location before and during the pandemic.
If you’d like to access the study interactive tool, just go here INTERACTIVE.
The Coronavirus pandemic has undoubtedly brought uncertainty to the global economy, and this study begins to clarify the impact the pandemic has had, and may continue to have on the UK property market.
Once the stamp duty holiday comes to an end, coupled with recent national lockdown measures and an extended furlough scheme that may further impact unemployment rates, figures are expected to fluctuate significantly in the coming months.
The data shows that UK house sales demand decreased by 32% on average.
Northern Ireland was the most affected region, with a sharp decrease of nearly 77%, followed by us here in Wales and England (36% and 32% less house sales enquiries, compared to last year figures, respectively).
With a 22% decrease in house sales demand compared to last year, and the only UK regions with an increase in house sales enquiries located in Scotland, the Scottish property market shows more hopeful projections than the rest of the nation
The data shows that with -54% house sales enquiries, the Welsh county of Gwynedd is among the UK regions with the highest decrease in house sales enquiries when comparing figures from 2019 January to September to the same period in 2020. The counties of Rhondda Cynon Taff and Powys follow closely behind with a decrease of -41.90% and -40.40% respectively.
Glamorgan and Conwy appear to have performed better than the rest of the Welsh counties, with sales enquiries down by -26.10% and -25.70% respectively in the last year.
While Scotland is the only location to see an increase in house sales enquiries, the country as a whole had the biggest drop in house sales demand during Q2 2020: a decrease of 48.21%.
England and Wales also saw a decrease during the pandemic (-38.12% and -36.36%, respectively), and Northern Ireland was the only country that had an increase on house sales demand in the second quarter of the year, with 12% more enquiries.
The study analysed how the broader economic impact of the pandemic may be reflected in demographics of sellers.
By comparing the most common type of sellers in 2019 to 2020, the data shows that in the UK, ‘Elite Pensioners’ and ‘Making Do Pensioners’ house sales enquires decreased the most (69% and 65% respectively). On the opposite side, the least affected by the pandemic were: ‘Middle Of The Road Families’ and ‘Affluent Establishing Families’.
Mark Irwin is the Marketing Director at WeBuyAnyHome, he told us……..
“The property market, like the global economy, has gone through unprecedented changes in 2020, and the truth is that no one can be exactly sure what will happen next. We decided to examine our own data and create a proprietary tool to better predict some of the trends within the housing market; the findings indicated which parts of the UK will be most impacted by the economy’s struggles in the last year—and who is set to recover best.”
“By interpreting these figures and factoring in increasingly stringent COVID-19 protections, we expect: the current “bubble” we’re seeing to continue into early 2021, followed by a dip of up to 20% if the economy worsens; we anticipate lower value properties that don’t benefit from the stamp duty reduction to be more acutely impacted, especially as they tend to belong to lower income residents who may be more susceptible to job losses and need to sell as a result.”
If you’d like more information visit WeBuyAnyHome.