Leading prime estate agent Knight Frank has reported a record July and a huge surge in activity during the final week of the month, with sealed bids for family homes once again being used to manage offers.
It says the number of offers accepted in the week ending 1st August was 132% higher than the five-year average.
This is the biggest weekly increase since the market re-opened in mid-May and highlights how seasonal patterns of activity have been changed by the Covid-19 pandemic in 2020, the company says.
Also, it says the number of new prospective buyers registering in London was 80% higher than the five-year average in the same week, while instructions to sell were up 40%.
But this extraordinary recovery is not just in London’s rarefied prime central markets – Knight Frank says parts of outer London have begun to recover too from the April lockdown low-point, particularly in Wandsworth, Richmond, Dulwich and Islington.
These areas also recorded significant monthly activity increases in July as they benefited from a surge in demand from families seeking more outdoor space.
“The problem is not enough supply of family houses in some parts of London,” said Tom Bill, head of UK residential research at Knight Frank (left). “Demand for outdoor space has surged and while we can’t know how long it will last, it means sealed bids for family houses are back.
“Lower-value markets have also benefited from effect of the stamp duty holiday, which was introduced at the start of July by the Chancellor.”