Demand for property has surged since UK markets reopened in May and looks set to continue, according to research from Knight Frank.
In the week ending 16 August, analysis of sales subject to contract (SSTC) on Rightmove shows a 61% jump compared with the same week the previous year.
Oliver Knight, head of residential development research at Knight Frank, said: “Such a strong rebound reflects the ongoing release of pent-up demand following lockdown, coupled with the recent cut to stamp duty.
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“It is also likely that there are wider behavioural shifts in play, as people reassess their housing needs – the ‘escape to the country’ narrative is one that has been covered in detail.”
The biggest increase in deals agreed since the end of lockdown has taken place in the prime market. A quicker recovery in that segment tallies with a similar trend which took place during the period that followed the global financial crisis.
The number of properties SSTC above £1m was 100% higher than the same week in 2019. For properties valued between £750,000 and £1m the jump was even larger at 119%. By comparison, the number of offers accepted for properties valued up to £500,000 was 53% higher.
The numbers match Knight Frank data which shows a similar trend. In London, the number of offers accepted for that same week was 68% higher year-on-year and in the country the figure was 158% higher.
Knight added: “A stronger recovery at the top-end reflects the fact that such buyers financial position means they tend to be able to transact more quickly, whilst more affluent households are also less reliant on lending.
“For now, pent-up demand, the stamp duty holiday and extension of the furlough scheme all continue to support a strong recovery in the market.”