2020: Prices will rise 2% before stopping

The price increase will be less than expected

UK house prices will rise 2% in 2020 before holding steady 2021, Hamptons International has predicted.

House prices are expected to see the most massive increase in Wales (3.0%), followed by London (2.5%), Yorkshire & Humber (2.5%), and the North West (2.5%).

Next year, the West Midlands is expected to see the most significant drop (-1.5%), followed by London (-1.0%) and the Southwest (-1.0%).

“COVID-19 stopped further price increase”.

Aneisha Beveridge, research director at Hamptons International, said: “The strong start of the real estate market in 2020 soon came to a halt with the emergence of Covid-19.”

“But after seven weeks of lockdown, the market started to recover rapidly. The market was driven by stifled demand dating back to 2016, as well as an increase in the number of households making lockdown-induced lifestyle changes, all capped off by a stamp duty holiday.”

“We believe that house prices will rise in Britain and will end in 2020, having rebounded from where they started at the beginning of the year.”

“But the real challenges won’t be felt until 2021. The economic fallout from the COVID-19-induced recession will push the housing market off its long-term growth trajectory. While there should have been some economic recovery to cushion the withdrawal of government support, we still expect the housing market to slow down next year.”

“In line with a gradual economic recovery, we forecast that house prices will rise again in 2022 and 2023. The housing market will again fall in line with its historical cycle, with the northern regions expected to experience the highest growth of prices, closing even more the gap with those of the south.”

Hamptons International said they are assuming a trade deal with the EU is reached by the end of the year and that a vaccine will be available in the first half of 2021.

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