Growing fears coronavirus will halt ‘Boris bounce’

Fears are growing that the coronvirus outbreak will end the “Boris bounce” in the housing market that firms have enjoyed since the December election.

According to the RICS monthly survey of estate agents, buyer enquiries and sales continued to rise in February. However surveyors expressed fears that Covid-19 might halt that optimism.

While RICS saw a net balance of +20% of agents reporting growth in enquiries in February, and a net balance of +22% reporting an increase in sales, the institution said “optimism has moderated” due to “concerns over the economic impact of the coronavirus … weighing on the outlook”.

This marks the third month of increased housing optimism following more subdued conditions for most of 2019. However, RICS said there were fears that the virus could impact upon the traditional spring selling season.

While the majority of agents still expect prices to rise over the year, surveyors interviewed for the monthly report made their concerns about coronavirus clear.

Mark Wilson, of Globe Apartments in London, said: “Where Brexit was, now read coronavirus. I have a horrible premonition that the latter will be the cause of more problems than the former.”

Alex Mcneil, of Bramleys Huddersfield, said that while the February rain had not dampened the market, the window for strong sales in spring “may, however, be closed by the impact of the coronavirus”.

John Halman, of Gascoigne Halman, Wilmslow, said: “A good month … Hope the coronavirus doesn’t ruin a good start to the year.”

Dominic Wedderburn, of Cupar, Galbraith, said that after an excellent start to 2020 he was already experiencing “some short-term headwinds with coronavirus impacting viewings and listings”.

Simon Rubinsohn, the RICS chief economist, said the survey results were encouraging, noting it was the first time since 2014 that new supply to the market had increased for three consecutive months.

He added: “Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector.

“For now at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.”