Editor: It has been particularly thought-provoking to keep an eye on the ‘Data’ column recently.
Last month’s piece titled ‘House prices to soar in prime central London and North West’ suggested that over the next five years, the average UK house price will grow by approximately 13.1% across all regions.
Yet this growth will develop independently according to the vicinity of each home to London. Though it is made clear from Savills’ research that the growth in house prices is largely a result of the predicted increase in interest rates by the Bank of England in the coming years, there must be a case made for the impact of Covid on the property market and its valuation. This can only really be validated through more expansive data research.
Without such data analysing the specific impact of attitudes post-Covid on property prices, it is hard to tell whether the rise in house prices is solely a result of increased interest rates or alternative catalysts such as confidence levels in the property market, changes in employment status, foreign-buyer returns and migration.
While the current market settles into a new rhythm, homeowners and estate agents need access to timely, accurate, enriched data more than ever before to inform them when to buy, lease or sell.
As a result, the strength of the market will depend on would-be buyers’ willingness to pay ever-higher prices to complete their move.
John Macdonald, chief executive at Recognyte