[All statistics which follow are the most recently available figures from the Land Registry and the Bank of England unless otherwise stated.]
Decreases for average house prices and sales volumes England & Wales
Average house prices in England and Wales fell monthly for a second month, by 0.3% in March to £243,269. Year-on-year there was a small – 2.1% - rise. Sales volumes for January – the latest month for which data was available – however fell both month-on-month (27.2%) and year-on-year (5.2%) to 53,373, the lowest monthly volume recorded since September 2012 (53,119).
These figures, although disappointing in normal times, were to be expected given that the lockdown started in March and news from China would have started to unsettle the market regarding sales volumes.
London: average prices rise despite more falling sales volumes
The capital's average prices rose both monthly (1.2%) and yearly (4.6%), to £485,794, a trend which continued from last month. There was a decline in sales volumes for January – to 5,569 – however, both monthly (11.9%) and yearly (16.6%) and this was the least recorded sales since April 2009 (4,323) which was notably in the aftermath of the credit crunch.
Once again and as for last month, it would appear that the luxury end of the market has had considerable effect on the overall average price level.
Real wages static for March
Nominal wages fell back to £540 per week in March, a 0.7% monthly decline and a 1.5% yearly decline, something entirely to be expected alongside the lockdown.
For April, inflation fell to 108.5, a fractional (0.09%) fall month-on-month and a 0.8% fall year-on-year. The Office of National Statistics has attributed this movement to falls in electricity and fuel prices slightly exceeding price increases for recreational goods.
Overall therefore, the situation seemed relatively static regarding real wages, although given that many sectors of the economy shut down in March - particularly the housing market - this finding is harder to analyse.
Mortgages and remortgage approvals decline in March
Given that the housing market shut in March, the 72% month-on-month fall in mortgage approvals recorded, to 15,848, is entirely to be expected for that month.
Remortgages also declined, but by only 19%, to 34,357, which would also reflect the closure of the market. It is likely, however, that of those applications going through the system, the marginally less rigorous remortgage application process (applicants already being home owners) would have led to this smaller fall.
Andrew Boast, co-founder of SAM Conveyancing, said:
"The pent-up demand has helped our housing market get back to work and is universally welcomed at a time when good news has been scarce.
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"The real test will be whether things can be sustained. There are so many uncertainties and threats around at present that home buyers and sellers will remain understandably cautious for some time to come."
"We look to highlight the better aspects of the news however and are happy to assist everyone in taking advantage of the more positive areas of the market. We'll continue to offer advice and encouragement wherever and whenever we can."