The British real estate market experienced a price increase in April, according to a study by Nationwide.
The 3.7% increase marked a three-year high in the midst of the coronavirus pandemic.
La società di credito ipotecario ha notato nel rapporto che il balzo del mese scorso si fermerà.
There have been occasional jumps in property prices in the UK over the past month, but according to a recent report from Nationwide, signs of market recovery will come to a halt in the midst of the Covid 19 pandemic. While house prices rose 3.7% last month, a three-year high, this percentage does not take into account the impact of the pandemic, the UK mutual financial institution said.
Nationwide’s April nationwide house price index is based on mortgage approval information, and there is currently a backlog of mortgage applications submitted but not yet approved. According to the company’s chief economist, Robert Gardner, much of last month’s data relates to mortgages that “started before the lockdown.
On average, a property in the UK today costs around £222,915.
The number of approved mortgages fell to about 56,200 in March, a seven-year low, according to a report released by the Bank of England on Friday.
The decline in the number of mortgage approvals indicates “the early impact of the outbreak on mortgage markets, which, just one month earlier, were more active than they had been in five years,” Simon Gammon, Managing Partner at Knight Frank Finance, noted in a report.
The UK’s Covid 19 suspension mechanism began on March 23, after a sharp rise in the number of new cases and the number of deaths. By April 30, an average of 177,000 people had tested positive for Covid-19, while more than 27,000 people had died, according to official figures from the Ministry of Health and Welfare.
Great start, hard times lie ahead
According to Gardner, since the beginning of this year “activity levels and price growth have been on the rise thanks to continued robust labor market conditions, low borrowing costs and a more stable political environment following the parliamentary elections.
“But activity in the housing market is now coming to a halt, due to measures to contain the spread of the virus, and where the government has recommended that no real estate transactions be made during this period,” the economist said.
Despite this, the British housing market had already experienced massive slumps before the pandemic, mainly due to fears of last year’s prime ministerial elections and the uncertainty of the brexite business.