British home sales hit record after lockdown, Rightmove
says
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[August 17, 2020] By
David Milliken
LONDON (Reuters) - Britons bought and sold
a record number of homes between mid July and early August as pent-up
demand from the coronavirus lockdown and a desire to leave London bucked
the usual summer slowdown, industry data showed on Monday.
Property website Rightmove, which says it is used by 90% of British
estate agents, reported the highest number of home sales agreed since it
began tracking the data more than 10 years ago, with transactions more
than 20% higher than the previous record.
The most recent figures from the Bank of England - which cover June,
before July's announcement of a tax break on moving home - showed a
sharp rebound in demand for mortgages, but fewer loans were approved
than before the pandemic.
"Rather than just a release of existing pent-up demand due to the
suspension of the housing market during lockdown, there's an added layer
of additional demand due to people's changed housing priorities after
the experience of lockdown," Rightmove director Miles Shipside said.
Average asking prices for August - based on data collected from July 12
to Aug. 8 - were 4.6% higher than a year earlier as the normal summer
softening in demand failed to materialise.
Only in London was there the typical 2% monthly fall in asking prices,
with prices up almost everywhere else in Britain other than London's
commuter belt.
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A "Help to Buy" sign is pictured next to new houses in Aylesbury,
Britain August 6, 2020. REUTERS/Matthew Childs/File Photo
"The out-of-city exodus has helped push prices to record levels in Devon and
Cornwall, for example, where working from home means a different lifestyle much
closer to your new doorstep," Shipside said.
Hamptons International, a chain of estate agents, said private-sector rents in
inner London were 8% lower in July than a year ago as a collapse in foreign
tourism and corporate relocation meant property that had previously been rented
out short-term became available to long-term tenants.
Estate agents also told Rightmove that buyers had been given extra impetus to
move by the temporary exemption from property purchase taxes for homes costing
up to 500,000 pounds ($654,650) announced in July by finance minister Rishi
Sunak.
However, demand was up across the board, not just for homes that benefited
directly from the tax break.
(Reporting by David Milliken; Editing by Alexander Smith)
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