Date Published 11 September 2020
Bournemouth insight overview
Bournemouth's housing market has regained momentum since lockdown ended. A strong rise in demand, which is not being matched by supply coming ontothe market, means there is currently upward pressure on pricing, with average prices rising 1.6% year on year. As well as ‘pent-up' demand coming back to the market post-lockdown, demand has also been augmented in some coastal locations such as Bournemouth, as buyers reassess how and where they want to live.
Our data shows that the most popular search term for property in Bournemouth is ‘garden', underlining the demand for outside space.
Annual UK house price inflation +2.5% Housing market activity continues to run at its strongest level for over 5 years on most measures. The number of new sales agreed per agent in August is 76% above the 5-year average with a similar trend in demand while average sales periods
decline. This is not just pent-up demand returning to the market. It also reflects the impact
of a once in a lifetime reassessment of the nation's housing needs in the wake of the 50+ day lockdown. Homeowners and renters are reconsidering their housing requirements, characterised by a search for more space and changing expectations for work and commuting patterns.
The strength of demand and sales is supporting the headline rate of UK house price inflation which slowed to +2.5% in July from +2.7% in June. The 3-month growth rate peaked at +1.1% in April on sales agreed before the lockdown and has now almost halved to +0.6%
Changing buyer priorities see houses selling faster than flats The COVID crisis has shifted buyer expectations and requirements and this is reflected in the time to sell between different types and size of home - again focusing on homes sold over the last 90 days. The three-bed house is the mainstay of the UK housing market, accounting for just under half of all housing supply. Three-bed houses remain the fastest selling properties with an average time to sell of just 24 days. Zoopla's tracking of supply and demand shows the greatest mis-match is for 3 bed houses. These are the most in-demand property type, but the proportion of available supply falls short of demand across all parts of the UK. At a regional level there has been noticeable jump in demand for 3 beds in London and the S East of England as households seek out more space. Those looking to buy in London may need to look outside the city to meet their needs. In the West Midlands 60% of all applicant demand is for 3 bed houses.
Report by Zoopla
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