UK house prices are set to hold firm for the rest of the year despite the looming recession and rising unemployment sparked by the coronavirus crisis.
Annual house price growth has been sustained at 2.5 per cent as demand continues to outstrip supply, despite fears that the pandemic would cause property values to plunge.
According to the latest research the UK housing market is performing at its strongest for five years, with the volume of sales agreed per agent up 76 per cent on the five year average.
The most recent UK house price index from property platform Zoopla found that house prices will end the year two to three per cent higher than the start.
Annual house price growth in London was 2.1 per cent in July, compared to the same time last year where the capital was registering house price falls of 0.9 per cent.
Zoopla research and insight director Richard Donnell said: “Housing market conditions remain unseasonably strong despite the UK moving into recession.
“Demand continues to outpace supply and support house price growth of 2.5% per annum.
“Meanwhile, houses are selling faster than flats as we see a shift in buyer priorities in the wake of the lockdown and movers prioritise more space.
“The next important milestone for the housing market comes in September when schools reopen and the UK starts to get back towards a full reopening of the economy.
“ The ‘once in a lifetime’ re-evaluation of housing requirements on the back of the lockdown will be a counterweight to the impact of the recession on housing market activity over the rest of 2020.
“While demand has softened over August, we expect the current momentum in market activity to continue into the fourth quarter.”