The Centre for Economics and Business Research (CEBR) has warned that house prices may fall 14% next year, after the stamp duty holiday and government package of support measures end. This is inline with the Office for National Statistics forecasts of house price falls up to 20%.
In June around 150,000 home movers began to purchase properties after they were put on hold in March for 3 months and analysts report this is keeping house prices artificially high.
Nationwide reported month on month a 2% increase in house prices as people rush to beat the 31st March 2021 deadline on the stamp duty holiday. The CEBR said “the impact could be more dramatic”.
Analysts suggest a short 'spurt' in the housing market as the stamp duty reduction comes to an end but towards the end of the year and the first half of 2021 they predict average house prices to be 13.8% lower in 2021 than in 2020.
We have been predicting the same for some time although we expect holiday destination property to not suffer such high losses.