Web traffic surges in lockdown lift-off
A rebound in enquiries via the internet and social media suggests a short-term boost for demand
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A rebound in property enquiries last week was bigger than the so-called ‘Boris Bounce’ that followed December’s general election result, signalling a short-term surge in demand.
In the week ending 17 May, the number of enquiries from the internet and social media was the highest it has been in a year and 8% above the previous peak in early February. The government relaxed restrictions on property transactions on Wednesday 13 May.
The data covers listings portals such as Rightmove and OnTheMarket, all social media channels, emails sent via the Knight Frank website and enquiries made via its chat function. It does not include any contact with individual Knight Frank offices.
“This shows what happens when you temporarily suppress pent-up demand that had been building for years,“ said Andrew Groocock, regional head of sales for Knight Frank’s City and East region. “It’s early days but the ‘Boris Bounce’ may well be followed by a ‘lockdown lift-off’.”
Despite a relaxation of the rules, Knight Frank forecasts there will be 526,000 lost sales in 2020 as the economic effects of the pandemic play out. Fewer than half of those sales are forecast to return in 2021, with prices across UK markets expected to fall by 7% this year, according to Knight Frank’s revised forecast.
Data for last week also shows the number of new prospective buyers registering with Knight Frank was at the highest level in nine weeks. The number registering was 39% below the five-year average in London, which compares to a fall of 77% in the first week of lockdown. In markets outside the capital, the figure was -58%, compared to -84% in the first week of lockdown.
The bounce in the web traffic data suggests demand will continue to build in the short-term as pent-up demand is released.
“Last week saw the first flicker of what we believe will be a strong surge in activity,” said James. “In these early days it has become clear that the market will spring back to life more forcefully than most people would have imagined only a few of weeks ago.”
Buyers and sellers responded quickly to last Wednesday’s rule change.
“I had sellers emailing me last night and this morning saying they are happy for viewings today,” said Sam Sproston, head of Knight Frank’s Wandsworth office on Wednesday morning. “They said they would happily leave the house.”
Meanwhile, some buyers are now keener to advance transactions already underway. “We have one buyer at £2 million pushing to exchange as soon as possible before the expected surge in interest,” said Christopher Burton, head of Knight Frank’s Dulwich office.