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House prices forcast to drop 13% this year

The housing market is expected to fall by up to a sixth as thousands of Britons lose their jobs.

Yorkshire and East Anglia are expected to be the hardest hit with house prices dropping 16.5 per cent this year.

Next come the North-West and West Midlands with 16 per cent falls. The collapse in prices would take up to £38,000 off the price of an average UK home.

Overall, the average UK house prices will fall 13 per cent.

The crash will be driven by the rental sector as the amount tenants can afford to pay plummets due to wage cuts and unemployment.

The market has also stalled because buyers are unable to purchase. The figures, published by the Cebr today, come after the same think tank warned that lockdown has shrunk economic activity by 31 per cent.

The report said: ‘Shortfall in incomes has a tremendous potential to disrupt the housing markets.’

First-time buyer Susanna Wood, 29, exchanged on her new home at the start of March with her boyfriend when coronavirus was not a major issue for Britain.

But now, says Susanna, who works for the savings app Plum, the couple don’t know if they can move home – and they have already given notice on their rented flat in London.

She has been in touch with her solicitors and has been told that, so far, the move is ‘progressing as planned’.

She said: ‘We’re hoping the move still goes ahead on that date and is not delayed as we don’t know what could then happen. It may be months before we move.

‘If it doesn’t we’re concerned about where we can go as the country has been told not to visit friends or family amid the coronavirus, let alone stay with them.’

Emily Withers, an NHS Nursing Associate Trainee has been looking to buy a house with her husband, and while they’ve delayed a move for two months, the slump in the market might help them get onto the property ladder.’

‘We are looking to buy in the Reading area, the house we have put an offer in is in Sonning Common (a village 10 minutes away).

‘Buying a house is something we didn’t think would happen for us. We have 2 young children and my husband became bankrupt 6 years ago due to a failed business.

Currently living with family, Emily hopes that with money she has inherited and a good credit score the current climate could help with finding their dream home.

‘Myself and my husband put an offer in on our first house a few days before lockdown began… we will review it in 8 weeks time to reflect the house market.

‘We are both key workers; I am a Nursing Associate Trainee with the NHS and my husband is a manage at Royal Mail so we are extremely fortunate in that our jobs are currently secure.

‘If the housing market does fall, it would mean potentially we could get the house at a lower price making it a really good investment opportunity given the area we want to buy in. I think for us, we are one of the few that the current situation will really help us.’

Tom Matthews and his family were due to exchange on a new home but have now been left in limbo after their buyer put the brakes on the sale.

‘Buying a house is something we didn’t think would happen for us. We have 2 young children and my husband became bankrupt 6 years ago due to a failed business.

Currently living with family, Emily hopes that with money she has inherited and a good credit score the current climate could help with finding their dream home.

‘Myself and my husband put an offer in on our first house a few days before lockdown began… we will review it in 8 weeks time to reflect the house market.

‘We are both key workers; I am a Nursing Associate Trainee with the NHS and my husband is a manage at Royal Mail so we are extremely fortunate in that our jobs are currently secure.

‘If the housing market does fall, it would mean potentially we could get the house at a lower price making it a really good investment opportunity given the area we want to buy in. I think for us, we are one of the few that the current situation will really help us.’

Tom Matthews and his family were due to exchange on a new home but have now been left in limbo after their buyer put the brakes on the sale.

Article by thisismoney.co.uk

Click link below to read more:

https://www.thisismoney.co.uk/money/markets/article-8212455/Housing-market-expected-fall-sixth-thousands-Britons-lose-jobs.html

 

 

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