Coronavirus property prices

How has coronavirus affected property prices in the UK?

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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 The market was also hindered by many mortgage applications being withdrawn or put on hold due to consumers experiencing a sudden loss or reduced income due to the pandemic.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

Cities

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.

City Region Difference %
London London -10.34
Sunderland North East -9.41
Oxford South East -4.57
Manchester North West -2.84
Norwich East England -2.43
Dundee Scotland -1.82
York Yorkshire and the Humber -1.55
Gloucester South West -1.26
Edinburgh Scotland -1.05
Newport Wales -0.82
Glasgow Scotland -0.79
Belfast North Ireland -0.01
Leeds Yorkshire and the Humber 0.37
Stoke West Midlands 0.4
Hull Yorkshire and the Humber 0.45
Derby East Midlands 0.48
Liverpool North West 0.56
Coventry West Midlands 1.01
Brighton South East 1.07
Nottingham East Midlands 1.4
Aberdeen Scotland 1.73
Bristol South West 1.83
Bradford Yorkshire and the Humber 2.13
Swansea Wales 2.21
Portsmouth South East 2.26
Sheffield Yorkshire and the Humber 2.29
Cardiff Wales 2.33
Cambridge East England 2.88
Peterborough East England 2.91
Plymouth South West 3.59
Southampton South East 4.06
Wakefield Yorkshire and the Humber 5.51
Leicester East Midlands 6.23
Birmingham West Midlands 8.81
Average

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
London 749,459 671,989
Cambridge 459,968 473,221
Oxford 460,793 439,749
Brighton 399,794 404,064
Bristol 339,971 346,204
Gloucester 326,833 322,709
York 317,129 312,207
Edinburgh 304,291 301,082
Southampton 291,467 303,296
Norwich 279,398 272,602
Cardiff 253,089 258,994
Leicester 242,592 257,716
Portsmouth 241,948 247,420
Peterborough 234,364 241,180
Leeds 224,200 225,032
Birmingham 212,425 231,131
Plymouth 217,667 225,482
Coventry 217,882 220,073
Derby 217,828 218,884
Manchester 219,997 213,757
Aberdeen 214,086 217,785
Nottingham 214,033 217,032
Sheffield 208,208 212,973
Wakefield 201,070 212,152
Glasgow 195,217 193,666
Newport 194,680 193,093
Swansea 182,959 187,008
Liverpool 176,571 177,568
Dundee 170,153 167,052
Stoke 160,390 161,027
Belfast 159,634 159,617
Hull 147,369 148,027
Bradford 137,771 140,709
Sunderland 127,519 115,523

Regions

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%).

Region Difference %
London -10.34%
North East -9.41%
North West -2.84%
Scotland -0.48%
North Ireland -0.01%
South East 0.71%
Wales 1.07%
East England 1.12%
Yorkshire and the Humber 1.38%
South West 1.39%
East Midlands 2.60%
West Midlands 3.41%

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).

For all media enquiries, please contact

Matt Mckenna
UK communications manager
T: +44 20 8191 8806
matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2

Methodology

  • Royal Institution of Chartered Surveyors (RICS)
  • Zoopla
  • 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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