UK Property: House prices rise again, but could Coronavirus impact the property market?

These figures are supported by a positive update from the Bank of England earlier this week, reporting a 7.1 percent year on year increase in the number of mortgages approved for property purchases in January.

Although the impact of Brexit on the housing market appears to have receded for the moment, there have been rumblings this week around how much, if at all, the outbreak of Coronavirus could negatively influence resurgent consumer confidence around moving home.

Could it really make that much of a difference to house prices and activity? Or is it just media hype?

It does appear to be something that commentators around the industry are at least factoring into their thinking.

Commenting on the report, Managing Director of Halifax Russell Galley explains, “The UK housing market has remained steady heading into early spring. Much like we saw in January, the increases seen in February reflect the continued improvement of key market indicators. The sustained level of buyer and seller activity is strong compared to recent years, with positive employment conditions and a competitive mortgage market continuing to support demand.”

However, Russell cautions, “Looking ahead, there are a number of risks, including the potential impact of coronavirus, which continue to exert pressure on the economy and we wait to see how these will affect housing market sentiment later in the year.”

Marc von Grundherr is director of upmarket London estate agency Benham and Reeves and sells some of the most expensive properties in the UK, some of which are purchased by overseas buyers. He observes that there are “Further signs that the UK property market has awoken from its politically induced slumber and is firing on most, if not all cylinders so far this year.” 

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source: express.co.uk