Housing market set to rise
House sales could rise by up to 10 per cent.
Although a dip in the number of housing transactions has been recorded during previous World Cups, this appears to have been short-lived and the housing market will bounce back, with property sales in August set to rise well above the average summer levels.
haart has analysed data on housing transactions before, during and after the tournament, stretching back 20 years from the World Cup year of 1986. That year, the tournament was hosted by Mexico and England reached the quarter finals.
The results reveal that when the tournament is in full swing in June and a large proportion of the public are watching the matches, the monthly average number of housing transactions dropped by 1,600, a percentage decrease of 1.3 per cent.
However, post competition, transactions bounced back up again with an average percentage increase of 4.1 per cent in August.
If England perform well the bounce back will be even more significant as the feel good factor carries people forward. In 2002, when England successfully reached the quarter-finals, transactions dropped by 5 per cent in June but increased by 11 per cent post competition.
In contrast, in 1994, the year in which England failed to qualify for the World Cup, the results closely mirror the pattern in non World Cup years. In June and July, monthly transaction levels dropped by only 0.9 per cent and there was not the post World Cup boost. In 1998, the slight increase in transactions can be put down to the fact that England went out early in the second round and the market was very strong.
Russell Jervis, managing director of haart, said: “It is well documented that the World Cup will impact on the economy as football fever grips the nation. Our research clearly shows that the housing market is no different, as the fixtures of the World Cup monopolise people’s time, and the important decisions that need to be thought through are put aside until it’s all over. However, as our research reveals the housing market is set to be very buoyant in the aftermath of the competition, as homeowners and buyers quickly resume their lives.
“With this in mind, potential buyers and sellers should consider entering the market now and being a step ahead of the post tournament rush, as it could be an excellent time to snap up a great deal amidst the football fever.
“The housing market has been particularly buoyant so far this year, as confidence remains high, under the backdrop of continued household growth and a stable interest rate outlook. We are confident activity levels will soar by as much as 10 per cent after the tournament and it could be a lot more if England win.”