Housing market prediction: 500,000 sales lost this year
The housing market was experiencing a strong recovery folllowing the decisive general election win by the Conservative Party.
But the coronavirus crisis has put that recovery on hold, according to Knight Frank.
The property analyst forecast that property sales across the UK will total around 734,000 for 2020, a 38% decline from the level seen in 2019. It predicts slightly smaller falls seen in Greater London and in the prime central London market.
However, it does expect a revival in activity, with volumes in 2021 expected to be 18% above 2019.
This ‘will not fully offset the drop in 2020’, said Knight Frank, and of the nearly 526,000 sales it expects to be ‘lost’ this year, fewer than half will be carried into 2021.
What about house prices?
Knight Frank predicts that UK house prices will fall by 3% in 2020 with prices in prime central London remaining unchanged, following a 25% fall in some markets since 2014.
Prices are expected to recover sharply in 2021 – with 8% growth expected for prime central London prices for next year.
It added that rental values in prime central and outer London will remain flat over the course of 2020, but rise by 10% in prime central London and 11% in prime outer London in the five-year period to the end of 2024.