The Covid crisis has cost estate agents 124,000 sales so far despite the housing market mini-boom experienced in recent weeks, it has been confirmed.
This means property sales worth £27 billion have been lost to estate agents as vendors delay or cancel their moving plans.
Based on an average commission rate of 1.42%, approximately £38 million has been lost across the industry.
The research by Zoopla claims that despite the best efforts of estate agents and the housing market to catch up, overall sales are expected to be 15% lower during 2020 when compared with the year before.
The portal says the downturn in housing market activity has been offset to a significant degree by both the strong start to the year prior to Covid, the 25.3% ‘bounce back’ since the market re-restarted and the Stamp Duty holiday announced by Rishi Sunak this month.
“For those operating in the market, and others looking in, the latest forecasts for increased unemployment and a sharp economic contraction over the next 12-18 months certainly seem at odds with current levels of sales market activity,” says Richard Donnell, Research and Insights Director at Zoopla (left).
Donnells’ data also contradicts the ‘seismic shift’ claims by some agents and other portals including Rightmove that a ‘flight from the city’ is taking place following the pandemic among home buyers.
For example, London ranks fifth for growth in demand since the start of 2020 and when examined by inner, outer and commuter areas, “we can see that demand has seen a modest shift away from the centre, towards the suburbs and commuter belt,” says Donnell.