Implications for buyers and sellers
It’s important to stress that these forecasts are not iron-clad, and there is a considerable margin of error which means things could turn out differently. However, there are risks which might even make the situation worse such as COVID-19 becoming more virulent, policy measures being withdrawn too quickly and the economic implications of Brexit. There are positive forces in the more immediate term, conversely, which may help to stablise UK house prices. Interest rates are being kept low, for instance, and the government is helping banks to expand their lending. If measures such as these help keep the financial system stable, then people are more likely to go out and buy a home.
What does this all add up to for buyers and sellers?
There are still many unknowns about the current and future state of the wider UK economy, as well as its housing market. However, it does appear that house prices will face considerable downward pressure for some time as we move out of lockdown. A “second wave” is uncertain, yet could bring the market to a standstill once again if social isolation measures are re-imposed.
As always, the decision to buy or sell a house will need to be judged on an individual basis with your financial adviser, taking into account your distinct financial goals and circumstances.