U.K. Homesellers Demand Record Prices Even as Virus Hits Economy
Asking prices for U.K. homes rose to a record in March as the market appeared undented by the coronavirus outbreak
(Bloomberg) -- Asking prices for U.K. homes rose to a record in March as the market appeared undented by the coronavirus outbreak that’s threatening economies across the globe.
Values increased 1% on the month to an average 312,625 pounds ($390,000), Rightmove said in a report Monday. In London, they gained 1.6% from a month earlier to 638,826 pounds. Both gauges posted their the biggest annual jump since 2016.
The number of sales also jumped, and Rightmove said it had seen “no sign” so far of any drop in buyer interest or activity, as Britons seek to take advantage of what had been seen as a period of relative stability following the political turmoil caused by Brexit.
The Bank of England’s emergency 50 basis point interest rate cut last week could support demand if it feeds through to lower mortgage rates, it said.
“The market has been waiting for several years for a window of certainty, and 2020 seemed set to be the year when many would look to make a move,” said Rightmove Director Miles Shipside, “However, the current fast pace of the housing market could now be temporarily affected by the spread of the Covid-19 coronavirus.”
A separate report by Acadata showed house prices rose by 0.5% in February.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, David Goodman, Jana Randow
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