Prime property sales boosting housing market

September 2, 2020 by Brendan O'Neill

Property Market

The latest research by Knight Frank indicates that the post-pandemic spike in UK house purchases is ongoing, with sales of prime properties driving the revival.

The study shows that there was a rise of 61% in the number of homes sold subject to contract (SSTC) for the week ending August 16th when compared with the previous year. Meanwhile, the figure for London rose by 68%, while for the country as a whole, it was 158% up on that of last year. The site that was used as a basis for this analysis was Rightmove.

Furthermore, a significant number of the homes that were bought and sold were at the upper end of the market, with a 100% rise in the homes SSTC with asking prices higher than £1 million in comparison with the same week for 2019. There was an even bigger spike of 119% in the number of properties priced from £750,000 to £1 million.

The major rise in prime property sales following the opening of the housing market is similar to what happened in the period after the 2008 financial crash, and Oliver Knight from Knight Frank told Mortgage Strategy that:

“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.”

This shows an area of the housing market that advisors equipped with a CeMAP qualification can target.