According to Reallymoving, house prices will fall in the first quarter of the year

Many experts agree that this year house prices will fall.

Property prices will fall 6.2% in the first quarter of 2021, as Reallymoving has predicted.

The decline is expected to accelerate on a monthly basis from -1.2% in January, -2.5% in February, and -2.6% in March.

Rob Houghton, CEO of Reallymoving, said: “Considering the broader economic context of the post-closing housing boom, it was never about whether it would end, but when.”

“In the second half of 2020, buyers faced stiff competition for homes, forcing them to pay more and, in many cases, eliminate stamp duty savings, but already this year we are seeing the demand falls to more normal levels and prices fall again.”

“The extent of the decline depends on the duration of the current lockdown and the generosity of the Chancellor to mitigate its impact, the speed of the vaccine’s deployment, and the subsequent economic recovery.”

“The market has yet to really be tested at the end of the licensing plan and the mortgage payment holidays, which currently mask job losses and distressed property sales.”

The end of the stamp duty holiday will have a negative impact on prices.

Average house prices should fall from £ 352,106 in December 2020 to £ 330,295 in March.

Houghton added: “As we approach the end of the stamp tax holiday on March 31, sellers should prepare for an increase in gas scrubbing, where buyers reduce their bid just before the trade.”

“A lot of deals will depend on supposed savings in stamp duty, and if they are not completed on time, buyers will suddenly have to find a significant amount of cash or renegotiate the price.”

“It’s not all bad news though, with a finally agreed Brexit deal ending four years of uncertainty and positive action by lenders to reintroduce high-value home equity loans and lift gifted deposit bans.”

“Combined with falling prices and the end of the stamp duty holiday period, we could see favorable conditions for first-time buyers to return to the market later this year.”

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