The average house price in the UK is now more than £250,000, according to The Halifax, the highest it has ever been. It marks a 7.5% rise for prices in October 2020 compared to last year.
Covid-19 and the subsequent national lockdowns have been named as the main cause of the rapid price rise and people desperately seeking more space has led to the biggest rise coming for larger family homes. Detached properties have seen a 6% rise since March.
Flats have also seen a rise since March, but only by a more humble 2%. In pounds and pence, this means flats have gone up by just under £3,000, while detached houses have risen by more than £27,000.
But a slump is on the way…
While Covid is the cause of this remarkable boost in property prices, it will also be the cause of its inevitable slump. That’s the view of many property experts and it’s hard to find a convincing argument the other way.
This pandemic and the damage it is causing the economy is impossible to deny. Today, the government is working hard to keep it moving, but emergency measures such as furlough and the stamp duty holiday are costing an awful lot of borrowed money. One day, it will need paying back.
Add to that the impact this has all had on employment and industry, from hospitality to travel, and there is going to be a lot less disposable income for people to pump back into the economy.
Such a moment is expected to arrive in Spring 2021 and the robust picture we currently have of the UK housing market could change very quickly indeed.
However, most experts thought the market would suffer as a result of the first lockdown. So far, they’ve been proved wrong. So who really knows what the future holds?
There are all sorts of opinions on what the future of the housing market will look like. What’s your theory? Do you think we’re heading for a slump, or will the market stay strong?