How Are House Prices To Be Affected Following COVID-19?
Posted on 10th June 2020
A question that many, inclusive of our Preston solicitors, have been trying to second guess; what is the latest on house prices, and how they may be affected, post COVID-19?
Property sales saw a significant decrease, during the lockdown period. This was, of course, in order to accord with social distancing, and government advise. Although the restrictions placed upon the housing market have been, somewhat, lifted, there are still guidelines that are to be followed. For more information on current government advise in this regard, see here.
At MG Legal, our team are working hard to ensure that property sales and purchases can resume normal, or as normal as can be, service, being mindful of current guidance. As Robert Jenrick, Housing Secretary, announced the reopening of the housing market, our Preston solicitors have been following matters closely. For more on what the announcement specifically entailed, see our blog.
Spending the majority of our time indoors, within the same four walls, has meant that many have now decided it is time for a change, and is time to move house. The big question that many have been asking, however, is how are house prices to be affected? This can be the deciding factor as to whether home movers take the plunge immediately, or hold off until we have further certainty on how the housing market is going to be affected.
Our solicitors in Preston have been looking into this further, and have found a mixed-bag in terms of the housing market projections. Here’s what we have discovered…
Recent findings of Really Moving, a price comparison site for home movers, have suggested that house prices are set to fall by 3.8%, between June and August 2020. The predictions arise out of data analysis taken from over 8000 conveyancing quotes, provided between March and May 2020. We can already hear the distant sound of keyboards clicking, in a bid to bag the best deal on the increasing amount of properties being marketed for sale. We envisage that this will be music to the ears of prospective property purchasers and, particularly, first-time buyers who are looking to take that first step onto the property ladder.
Russell Galley, Managing Director at Halifax, has commented:
“Looking ahead, we expect market activity to increase progressively as restrictions are eased further across the whole of the UK and we continue to have confidence in the underlying health of the housing market over the long-term.”
In contrast, Rob Houghton, CEO of Really Moving, projects a different view. He is of the opinion that, although we are seeing movement in the housing market once more, it is difficult, at this time, to conclude on how the same is to be affected long term. Houghton states:
“We’ll have to wait several months at least before the true impact of Coronavirus on the housing market becomes evident.”
As you can see, there are mixed view about the future of house prices, and how the same may affect the housing market and, indeed, the world of conveyancing. In summary, our property conveyancing solicitors have noted that, on the one hand:
- Restrictions on the housing market have been lifted, allowing home moves to resume subject to social distancing guidelines, as part of the ‘new normal’.
- This has opened up the market for many prospective home movers, and is believed to have a substantive positive affect on the economy, as the housing market rebounds.
- As a result of the current times, it has been suggested that house prices are set to fall.
In contrast, the comments of others have suggested a much more speculative view, in that:
- The economy is currently supported by various schemes such as mortgage payment holidays, the furlough scheme and government grants. As discussed by Houghton, above, it is likely that, in order to review the full impact of COVID-19, we shall have to wait, and review house prices, and our economic state, at regular intervals.
Our team of expert property solicitors shall be following the matter closely. Keep up to date with our legal news page, for the latest on house price changes, and all things conveyancing, here.
So, for all of your conveyancing queries, or for a fixed fee quote today, get in touch with our team of local solicitors, by submitting your enquiry online, here, where we will be delighted to be of assistance.
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