Halifax warns that coronavirus could derail recovery in property market

Halifax is warning that coronavirus fears and its impact on the economy could derail the improved housing market sentiment.

It comes as the lender’s February house price index showed average property values rose 2.8% annually to £240,677 and 0.3% on a monthly basis.

The rate is slower than the 4.1% annual growth recorded in January but Russell Galley, managing director of Halifax, said buyer and seller demand is relatively strong although it could be hampered by coronavirus fears.

He said: “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.

“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.”

Commenting on the data, Jonathan Hopper, chief executive of Garrington Property Finders, said: “Buyers have been very active but agents are telling us many sellers have held off going to market until the spring, so there just aren’t enough properties to meet demand at the moment.

“However, talk is already now turning to the possible effects of a coronavirus crunch.

“Any slowdown in activity is unlikely to be a result of cancelled viewings.

“Where a pandemic could bite, though, is through the havoc being wreaked on the stock market. A downturn is currently affecting all the world’s indices and this threatens to erode the confidence of would-be house hunters in the short term.”

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3 Comments

  1. GPL

    ……..Whisper it.

    There are signs.

     

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  2. SLF

    Viewings will start to dry up very soon. Tough times ahead.

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  3. Alan Murray

    As with all these things if we talk about what is going to happen and continue being negative it will become a self fulfilling prophecy.

    People  just need to live their lives normally instead of panic buying toilet rolls and walking round in Hazmat suits.

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