We’ve had a few reports about European housing markets come across our desk this week. Here’s a roundup of the salient points:
According to a report from market-leading Irish portal daft.ie, house prices have fallen by 3.3% nationally year on year with Dublin among the worst affected local markets. According to daft’s tame economist Ronan Lyons though “It is on the quantities side of things where the more interesting market changes are happening”. It seems that supply is returning to normal levels, or in the case of the notoriously scarce Dublin rentals market, above them. Dublin saw “65% more rental ads in June 2020 than the same month a year ago”.
Despite the reported fall in prices across Ireland, Irish online bidding engine company Beagel says that the prices sellers have been achieving with its technology have gone up since the beginning of the pandemic. According to CEO Healy Hynes, sale prices achieved before the lockdown were on average 104.5% of asking price but now that’s up to 106.5%. Hynes also remarked that activity for June, although 30% down on last year, was 250% up on April.
In Spain house prices have fallen 6.1% nationally in Q2. That’s according to a report by market-leading portal Idealista. The drop represents the largest of its kind since the portal company started tracking. The data showed some big regional differences and Head of Studies Fernando Encinar posited that Spain could go back to the “two speeds” country seen in the aftermath of 2008.
UK Chancellor Rishi Sunak is today expected to announce a stamp duty holiday for properties costing up to £500,000 to grease the wheels of the housing market and provide an estimated £1.3 billion in savings for home-buyers. At the moment around 16% of sales are exempt from stamp duty tax, but the new measure would see that figure go towards 90% according to Zoopla Director of Studies Richard Donnell who also remarked that:
“Housing activity has already rebounded strongly since the market reopened and any major change to stamp duty would provide a further boost to demand for housing.”