Pent-up demand following lockdown and shortage in supply is driving the increase

7th September 2020

Pent-up demand following lockdown and shortage in supply is driving the increase

The asking price for the average property in London is now 1.5% higher than it was in June 2019, with the average property listed at £628,000. However, prices still remain slightly below pre-lockdown levels.

Research by Rightmove suggests that an estimated 175,000 sellers may have been dissuaded from putting properties on the market during the lockdown period of March, April and May. This has created pent-up demand and shortage in housing stock, which is helping support prices. The property website said that it had experienced its highest levels of activity between May and June, as the property market reopened.

A study by data analytics firm, Twenty Ci, shows that there is currently a shortage of new housing stock on the market. Only 26% of the properties currently listed have been advertised for less than 3 months, whereas this proportion was 55% in June 2019.

Jaxons’ letting agents are continuing to offer prospective renters and buyers guided video tours of properties. In person viewing appointments complying with social distancing policies are available following virtual viewings.