Market update: Three months before it's stable but signs are good

A market commentator says it will take up to three months before the housing market stabilises into the ‘new normal’ after the relaxation of lockdown - but  the signs are good for agents and consumers alike.

Doug Shephard, who compiles the Home.co.uk asking price index each month, says that currently the market has only around 40 per cent of the supply of homes on sale that would normally be in place at this time of year.

However, he insists demand appears to be strong since the market resumed just over four weeks ago, notwithstanding a mortgage bottleneck and some uncertainty over the wider economic effects of Coronavirus appearing in the near future.

In his latest market snapshot Shephard says: “The key question remains ‘How vigorous will be the rebound be?’ Indications thus far suggest the market is taking off with an unprecedented sense of urgency.”

Home.co.uk says UK-wide average asking prices have risen 0.7 per cent in the past month and 0.8 per cent annually, taking the typical home to £310,819.

However, listings are well down in some regions - most of all, of course, in areas run by devolved governments which have not resumed the local housing markets to the same degree as in England. 

New sales listings are down in Scotland, Wales and Northern Ireland by 83 per cent, 78 per cent and 63 per cent respectively.