There has been much speculation about the long-term outlook for housing demand in cities. COVID has boosted demand outside the major cities but Zoopla believes this is more a one-off factor than a long-term ‘seismic shift’ in home buyer attitudes.
The stamp duty changes in England and Northern Ireland have delivered an immediate boost to sales in London. Zoopla’s data shows new sales agreed have increased by over a quarter (27%) in London where the greatest benefits of the changes
According to Zoopla’s recent reports, the lockdown and 2-month closure of the housing market has impacted the dynamics of supply and demand which influence the near-term direction of pricing.
While the near-term outlook is positive, Zoopla indicates housing demand to weaken over the course of the summer as the economic impact of COVID starts to materialise, with widespread projections for increased levels of unemployment.