Coronavirus: UK House Prices Fall For Third Month In A Row

Written by Mathew McCorry

If you read my property blog now, that’ll be the end of it. I will not look for you, I will not pursue you. But if you don’t, I will look for you, I will find you and I will make you read it.

We’ve had some really positive news recently surrounding the property industry and the return after everything that has happened with Coronavirus and the subsequent lockdown. Despite Rightmove boasting their busiest day ever there’s a little bit of negative news to share in regards to the Halifax House Price index & Nationwide House Price Index.

For the third month in a row the average house price of a home in the UK has dropped according to the Halifax House Price Index who have just released their data for May. The news was perhaps unavoidable and the hangover of the lockdown is gradually becoming clearer in the property market. What are the stats? In May the average price of a UK home has dropped again, by 0.2%, which now leaves it at £237,808. Since the beginning of the pandemic the house prices have been down in consecutive months and overall have dropped by 0.5%. It may not sound like a large decline, and really, it’s not, but it could potentially be a sign of things to come.

Nationwide also offer a house price index which provides a slightly different view of the market. In their index the average house price was consistently increasing from October 2019 right up until the May 2020 figure. The impact of lockdown took far longer to impact this set of data, but it’s perhaps hit harder overall. In April 2020 the average house price in their index sat at £222,915 but dropped to £218,902 which represents a drop of -1.7%! It’s not as bad as it may seem though, as from Feb 2019 the average house price was at £216,092, meaning over the period of lock down it has still increased overall by 1.28%.

The full effects of lockdown on the property market are unknown and it’s too early to tell but initial signs are actually pretty positive with buyer interest looking up. There’s probably going to be a few more months of average house price drops as the uncertainty looms which may mean buyers being more cautious in their offers, but as long as the drop remains relatively low the market should eventually recover to full strength.

This is obviously a bit of a negative spin on things; however, restrictions are easing in the UK and the initial signs are showing that buyers are still interested. There will be a bit of a backlog for estate agents, solicitors, RICs & mortgage companies alike as they try and catch up with all the property sales that where put on hold, but after a few months of pain it should hopefully return to normal.

Need to sell? We are still operating

If you’re struggling to sell because of the lockdown and need to move quickly, we are still operating and can help. During this tough period, we unfortunately may take a bit longer to buy your home than our quoted 7 days, however it will still be quick, we just have a few more hurdles to jump through.

Although it may take slightly longer, we are still open and actively purchasing property. It’s easy to get started just enter your postcode on the get an offer page, after you answer a few questions and have an initial conversation with us we will be able to provide you with a no obligation offer, there’s no commitment!

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