That’s according to property website, Zoopla, which revealed 60% more house sales fell through in the week to 22 March than in the previous seven days.
Despite this and the fact interest from new buyers had also fallen ‘dramatically’, Zoopla said the market had not entirely ground to a halt.
In fact, it reported, sales continued to be agreed, albeit at a slower rate, down 15% on the previous week and 4% below levels recorded a year ago.
The report comes as the Land Registry released its UK House Price Index showing prices had gone up in January by 1.3% over the year.
The data, which reflects the period before the Covid-19 outbreak, showed potential for growth but this has now been overshadowed by recent events.
Zoopla said the current fall in demand is expected to lead to a reduction in sales agreed in the spring and summer. But Richard Donnell, director of research and insight at Zoopla, said he didn’t expect to see house prices fall in the short term.
He explained, external shocks – such as the one currently being experienced – had historically hit consumer confidence and this put a brake on housing market demand and the number of people moving home.
But he explained the levels of property sales and purchases were typically more volatile than the change in house prices. “We do not expect any immediate impact on prices,” he said.
“Beyond this, the outlook for house prices largely depends upon how the government’s major package of support for business and households reduces the scale of the economic impact.
“Low mortgage rates mean forbearance will remain the preferred choice for lenders, but further government support in these unique times cannot be ruled out.”
Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors residential chairman, agreed. He said: “On the ground, viewings may have dried up but enquiries haven’t. Many, already fed-up with enforced confinement, are clearly hoping to move in the short rather than the longer term.
“If that is the case, we don’t expect prices to suffer too badly if the current shortage of listings continues and government assistance keeps as many in work as possible.”
Zoopla has forecast Individual spring months may see newly agreed sales down by up to 80% on last year given the shutdown of normal life and knock on impact for the market.
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