What was the state of the UK property market following the initial impact of the COVID-19 pandemic? Given the disruption caused to the property industry, it was unsurprising to see a decline in the latest Nationwide House Price Index.
The UK property market had been significantly disrupted for several months, while mortgage lending and transaction activity were restricted during the national lockdown. The key question for buyers, sellers and lenders was whether the downturn would develop into a more prolonged decline or prove to be a short-term interruption to the market.
While some industry commentators anticipated a double-digit fall in house prices, there was also growing expectation of a recovery as restrictions eased and property activity resumed.
The pandemic was also beginning to influence buyer priorities. Increased demand for space, gardens and less densely populated locations suggested that some homeowners were reconsidering where and how they wanted to live.
Bank of England mortgage figures reflected the scale of the disruption, with approvals falling to 15,800 in April, around 80% below the level recorded in February.
The period highlighted the uncertainty facing the property market, but also the potential for buyer demand and lending activity to recover as confidence returned and restrictions were gradually lifted.
