"A stronger recovery at the top-end reflects the fact that such buyers financial position means they tend to be able to transact more quickly, whilst more affluent households are also less reliant on lending."
Demand for property has surged since UK markets re-opened in May, with figures from Rightmove for the week ending the 16th August showing a 61% annual rise in the number of sales subject to contract.
Knight Frank's analysis of the Rightmove data shows that the number of properties sold above £1 million was 100% higher than the same week in 2019, whist for properties valued between £750,000 and £1 million the jump was an even larger 119%. By comparison, the number of offers accepted for properties valued up to £500,000 was 53% higher.
The numbers match Knight Frank data which shows a similar trend. In London, the number of offers accepted for that same week was 68% higher year-on-year and across the country the figure was 158% higher.
Knight Frank says a quicker recovery in the prime market tallies with a similar trend which took place during the period following the global financial crisis.
Oliver Knight, head of residential development research at Knight Frank, said: “Such a strong rebound reflects the ongoing release of pent-up demand following lockdown, coupled with the recent cut to stamp duty.
“It is also likely that there are wider behavioural shifts in play, as people reassess their housing needs – the ‘escape to the country’ narrative is one that has been covered in detail.
“A stronger recovery at the top-end reflects the fact that such buyers financial position means they tend to be able to transact more quickly, whilst more affluent households are also less reliant on lending.
“For now, pent-up demand, the stamp duty holiday and extension of the furlough scheme all continue to support a strong recovery in the market.”
