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Coronavirus property prices
How has coronavirus affected property prices in the UK?
Between 27 March and 12 May 2020 the UK’s property market came to a near standstill. This was caused by the coronavirus pandemic forcing estate agents to shut. The market was also hindered by many mortgage applications being withdrawn or put on hold due to consumers experiencing a sudden loss or reduced income due to the pandemic. We have explored how property prices have been affected across the country during this time and how interest in renting has fluctuated in different regions.
How the pandemic has affected property prices
London’s property prices have been affected more than any other city. On average prices there have lowered by 10% since January 2020, meaning now could be a good time for buyers to find a bargain (if you can afford the downpayment). Belfast has seen the least change with prices decreasing by 0.01% on average. Sellers in Wakefield, Leicester and Birmingham will be pleased to know that property prices have continued to grow despite the pandemic, with prices growing by 6-9% since January.
|York||Yorkshire and the Humber||-1.55|
|Leeds||Yorkshire and the Humber||0.37|
|Hull||Yorkshire and the Humber||0.45|
|Bradford||Yorkshire and the Humber||2.13|
|Sheffield||Yorkshire and the Humber||2.29|
|Wakefield||Yorkshire and the Humber||5.51|
Looking at what this means in actual prices, the average price of a property in the most expensive UK city, London, was £749,459 in January 2020, compared to £671,989 this June. For properties sold in Cambridge, the January price of £459,968 has gone down by £13,253 to £473,221.
For those cities with lower prices to start with, Sunderland’s properties cost an average of £127,519 at the start of the year but are now down at an average of £115,523. In Bradford the difference isn’t as dramatic, where the old price of £137,771 gained close to £3,000, landing on £140,709 as the average price.
|City||January 2020||June 2020|
When comparing regions, London remains the worst affected area in terms of property prices, with the city experiencing a 10% decrease on average. The capital is closely followed by the North East (9% decrease). On average the West Midlands has managed to avoid reduced property prices with prices rising there more than in any other region in the 5-month period (3%).
|Yorkshire and the Humber||1.38%|
How the pandemic has impacted interest in renting
Using Google Trends we looked at how interest in renting has differed from the start of lockdown (23 March 2020) until the first week of June 2020. Wales has experienced the largest uptick in interest. Searches for rentals in East Midlands increasing by 308% since lockdown began, with Leicester as the most interesting city for rent-seekers. Since the housing market reopened, both Wales and East England saw a high percentage increase in interest (200% and 148% respectively).
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- Royal Institution of Chartered Surveyors (RICS)
- Google Trends
- By using the average price of properties sold in the biggest 40 cities in the UK, we’ve compared the average price in January 2020 and June 2020.
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