Are House prices set to fall in the coming months as the stamp duty holiday and furlough schemes come to an end?
According to the Royal Institution of Chartered Surveyors, with the ongoing lockdown restrictions as well as schemes like the stamp duty holiday due to end by March, these factors could see house prices falling significantly.
House prices have been incredibly resistant to the fallout from lockdowns and restrictions as the world deals with the coronavirus pandemic.
But in the last month these increases saw their smallest rise compared to previous months and most short term predictions on sales see a fall in demand and prices.
But is it all gloom?
Property Sales in the year ahead
The average outlook for the year ahead is still looking positive although HMO’s and large properties suitable for an HMO are suffering in some areas due to an extension of regulations and licensing.
First-time buyers could be impacted with average prices rising but lenders have been re-introducing some 90% Loan to Value products for first-time buyers which will help balance the market.
With this third lockdown, estate and letting agents have managed to keep operating which has been good news for buyers looking to complete before the Stamp Duty holiday ends on 31st March.
There have been calls for this to be extended for a further 6 months but no signs of movement from the government so far.
The Stamp Duty Holiday caused a resilient house market to grow even more. The ONS revealed that average house prices rose by 5.4%. But this has seen a delay in the mortgage market with the number of applications it has been handling and some could miss the March deadline for completion if demand continues.
The number of new buyer queries has dropped for the fifth month in a row causing the near- and long-term predictions of a drop in prices with a slowing of the market.
Queries and demand from potential landlords continued to fall in December.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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