House prices expected to fall due to COVID-19

House prices will fall due to fallout from the COVID-19 pandemic, according to some experts.

Ray Boulger, senior technical manager of broker John Charcol, predicted house prices to tumble by 10% over the next three months.

Boulger said transactions should be even lower than in 2009 after the global financial crisis, as economic uncertainty dissuades people from moving and surveyors have the practical problem of visiting homes to prepare a mortgage valuation.

He reckoned the March Nationwide House Price Index (yet to be published) will represent house prices at their peak.

Some are more pessimistic, as financial services group Jefferies said house prices could fall by 20% this year in a worst case scenario, as the Mail on Sunday reported.

However not everybody agrees, at least publicly.

A spokeswoman from agent UK Sotheby’s International Realty claimed: “Covid-19 won’t lower prices; it’s just simply stalled some sales for now.

“But it is a great time to consider buying…before the market starts again from where it left off. If you are thinking of moving, don’t wait; really don’t.

“Housing will get more expensive this year eventually. Now is a great time to buy and with our video viewings, we can do that from the comfort and safety of your home.”