New build house prices have fared marginally worse than existing properties, slipping 1.9% since January while second-hand homes have seen no change to their average price. On an annual basis, new build prices have risen 1.9%, compared to 1.6% for the average property.
Today’s data from the Land Registry marks the first since lockdown, and, overall, industry observers believe the figures have been worth the wait. Director of Benham and Reeves, Marc von Grundherr, said: “We’ve waited quite sometime for today’s figures and it was important they were delivered with one hundred percent certainty given the importance of their wider context.
“Of course, those quick to talk the market down will point to the fact that these sales were agreed months prior to lockdown proceedings and, we will no doubt see a wobble in price growth further down the line, due to the lag in property sale reporting.
“However, what today’s figures do demonstrate is a market defiant in the face of adversity.
Despite such unprecedented circumstances we still managed to carry on and complete on property sales agreed prior to the pandemic hitting, rather than throwing in the towel until the dust had settled. This stoicism is the reason why the UK property market continues to bounce back regardless of what’s thrown at it and will continue to do so over the coming months.”
The average price of a new build property in England is now £316,668, compared to £243,618 for an existing property.
Group CEO of Enness Global, Islay Robinson, said: “Although today’s house price figures shine a light on a pre-lockdown market, the return of the UK house price index will be welcomed, if only as a sign of returning normality within the industry.
“With lending rates remaining favourable, the nation’s homebuyers continue to fund the majority of their purchases via mortgage lending, albeit the recent lockdown saw a reduction in consumer demand as many understandably waited out a period of uncertainty we’ve never experienced before.
“That said, by the time any decline does reveal itself, the swift market turn around spurred by pent up demand and further stoked by a stamp duty holiday, will have ensured that any decline in prices is short-lived and quickly resigned to the history books.”
However, other feel that it is far too early for a damage report on the property market. Managing Director of Barrows and Forrester, James Forrester, said: “Today’s index could be viewed as a tad irrelevant really given the fact that any impact of the pandemic and the resulting lockdown won’t become apparent for at least a few months yet.
“When you consider the rate at which the market has bounced back since the industry reopened, it becomes even more irrelevant, as by the time any impact does appear we will be over the hump and in a far better place.
None the less, great to see positive movement on an annual basis and with other industry indicators all pointing to a strong return to form, we should see this positive trend continue with a slight bump in the road to account for lockdown.”
However, the figures can tell us something of the state of the market before lockdown. Perhaps these encouraging figures hint at a robust market once the dust has settled. Andy Sommerville, Director of Search Acumen, said: “This latest data reveals the positive path the UK property market was on before the pandemic hit.
“Annual house price growth in April was driven by a combination of greater political certainty, robust labour market conditions and low borrowing costs.
“It is no secret that in the months following April, the pandemic has knocked this momentum out of the UK property market. However, the tides are turning and more recent data has indicated a ‘mini boom’ as a result of the higher Stamp Duty threshold, a release of pent up demand as well as underlying demand as customers decide to move following their experiences of lockdown.
“The next challenge is for the Government to urgently address how it is going to bolster demand after the anticipated drop off once the Stamp Duty threshold is lowered again. This should come as part of a wider shake-up of the UK’s housing industry.
“Although the Government has taken initial action to improve England’s planning system, this overhaul must recognise the urgent need to implement widespread digitisation of the country’s housing industry. If fails to do so, it will not go far enough. New ways of thinking and greater collaboration around digital ways of working are needed now more than ever.”
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