Coronavirus' impact on the property market: house prices rise 2.8 per cent amid fears of 'risk' posed by outbreak

The New Year property market revival triggered by the Conservatives’ election victory continued into February when prices rose 2.8 per cent, according to a survey today.

Halifax, one of Britain’s biggest ­mortgage lenders, said the market “has remained steady heading into early spring” with a boom in the number of buyers.

A 2.9 per cent quarterly rise in prices in the three months to February was the fastest pace since October 2015.

But Halifax also warned of the “risk” posed to the revival by the coronavirus outbreak, although most market commentators said it has had limited impact to date.

Halifax managing director Russell Galley 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."

But he said: “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.”

Most London estate agents are still seeing a spike in buyer registrations, viewings and offers as pent-up demand held back by Brexit uncertainty floods back into the market.

A spokeswoman for agency Chestertons said its Fulham office agreed a record 22 deals in February, with nine receiving multiple offers, “which was rarely the case this time last year”.

Lucy Pendleton, founder director of estate agency James Pendleton, said: “Registrations for purchase are running extremely hot. Despite the newspapers and TV screens being peppered with images of people wearing face masks and plastic bottles on their heads, there’s still a huge appetite to move, and buyers and vendors have so far refused to put their searches on hold.”

But she added: “Coronavirus impacted our business for the first time on Wednesday, stealing away a sale that was just days from exchanging. The buyer worked in the events industry which is being rocked by large numbers of cancellations. He was unfortunately told his job was at risk.”

Jonathan Hopper, chief executive of buyers Garrington Property Finders, “Any slowdown in activity is unlikely to be a result of cancelled viewings. They aren’t sporting events and, though we’ve heard of a few vendors cancelling visits because they don’t want strangers in their homes at the moment, they are very much in the minority."

Guy Harrington, chief executive of lender Glenhawk, said: “We are officially in bull territory, with buyers, vendors, agents and lenders all benefiting from the rapid market recovery. The question on everyone lips now will be whether the damage that coronavirus is doing to other parts of the economy seeps into the housing market, and if so, just how catastrophic will it be?”