Property demand continuing to surge – Knight Frank

Demand for property in the UK has surged since markets reopened in May, as pent-up demand, the stamp duty holiday and extension of the furlough scheme all continue to support a strong recovery in the market, according to analysis from Knight Frank.

The real estate specialist analysed sales subject to contract (SSTC) on Rightmove in the week ending 16 August, which showed a 61% jump compared with the same week last year.

The number of properties SSTC above £1m was also 100% higher than the same week in 2019, Knight Frank stated, while for properties valued between £750,000 and £1m, the jump was 119%. By comparison, the number of offers accepted for properties valued up to £500,000 was 53% higher.

Knight Frank suggested the numbers matched its own data, highlighting that in London, the number of offers accepted for the same week was 68% higher year-on-year, while around the rest of the country, the figure was 158% higher.

Knight Frank residential research partner, Oliver Knight, said: “Such a strong rebound reflects the ongoing release of pent-up demand following lockdown, coupled with the recent cut to stamp duty, a trend we have explored in previous updates.

“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.

“But a closer look at the data suggests there are other nuances at play. The biggest increase in deals agreed since the end of lockdown, for example, has taken place in the prime market. A quicker recovery here tallies with a similar trend which took place during the period that followed the global financial crisis.”

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