Following a peak in the average price of properties in England and Wales in December 2020.
House prices are predicted to fall by 6.2% over the next 3 months.
According to research from Reallymoving, they predict that houses price could fall in the first 3 months of 2021 as follows:
Reallymoving’s data is gathered through a comparison site where buyers search for conveyancing fee quotes and enter the purchase price they are paying for the property, this enables them to provide a 3-month house price forecast.
Reallymoving said: “the housing market in for summer and early autumn is unsustainable and is entering a period of readjustment and should lenders warm towards higher Loan to Value (LTV) loans and ease restrictions around gifted deposits, the price falls will attract more first-time buyers to the market later in the spring”.
In addition, the pressure on upwards houseprices, conveyancers, surveyors and removal firms should ease once the stamp duty holiday has ended. That said, there is already a Parliamentary Debate been forced to try and extend the stamp duty holiday.
The Office for Budget Responsibility (OBR) had already predicted in July 2020 that house prices could fall 11.7% in 2021. We suggest an extension to the stamp duty holiday will likely not happen.