Average property prices in the UK fell by 0.6 per cent between March and April as the coronavirus pandemic has had a significant effect on the sector, according to the latest figures from Halifax’s House Price Index.
The average property price in April was £238,511, with mortgage approvals dropping by one-quarter (24 per cent) between February and April. Despite this, the annual growth figure, from April 2019 – April 2020, still stands at 2.7 per cent.
Experts have stated that the lockdown restrictions have meant that the housing market surveys do not have the same impact, with transactions being stalled and the homebuying process seeing significant changes.
There has been an increase in browsing interest, with many buyers and sellers preparing for an easing of restrictions, while advanced bookings have increased by 182 per cent in the last month, according to the latest research.
Paresh Raja, Chief Executive of Market Financial Solutions, said: “In my opinion, this short-term fall in house price growth is likely to open new opportunities.
“Given the drop has been nowhere near as bad as initially predicted, buying a property now could result in notable price growth once COVID-19 has passed and the market recovers. After all, history has shown that the property market is able to bounce back quickly from crises.
“The challenge for buyers, however, is finding lenders who are still receiving new loan applications and have the resources to undertake on-site valuations. As a result, I’d expect to see a general increase in the number of buyers looking beyond high street banks to specialist lenders for loans during this pandemic.”
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