Many commentators are predicting a boom and bust period for the residential property market as estate agents report an increase in buyer enquiries in July as buyers take advantage of the stamp duty holiday but they also fear the property market bubble may burst when the stamp duty holiday ends and redundancies creep up.
June saw a 41% rise in property for sale listings and 51% in July. 75% of estate agents also reported the increase to buyer enquiries with 56% saying had already turned into sale agreeds.
After the re-opening of the housing market together with government support has led to a mini boom with a higher demand for property and an increase in house prices.
Chartered surveyors fear that as government support is withdrawn for current workers the rise in demand for property may drop and the housing market could go from boom to bust.
The coronavirus crisis has left incomes hit, people will lose jobs as a fall out from a dented economy. The Office for Budget Responsibility fear this will lead to price falls over the coming months between 2% this year and by the later half of the next year by a staggering 22%.
This projected fall in house prices, which could benefit first-time buyers with the prospect of property prices reducing.
The Resolution Foundation’s Housing Outlook report say first-time buyers could see this as an ideal opportunity to purchase with lower house pricing, but they may face the following obstacles.
The Resolution Foundation has called for government support for first-time buyers to support their incomes and give them an advantage over homeowners and landlords when trying to purchase a property.