House prices are set to rise by 11.4%
The average house price growth stood at -1.4% in August, but this is set to jump to a huge 11.4% in October 2020. According to home moving, a provider of quotes for home moving services, there is an exceptional demand from homeowner’s post lockdown which is causing a sharp spike in house prices.
Rob Houghton, chief executive of reallymoving thinks that there has been an unusual set of factors this summer which have contributed to the rise in house prices. But he also believes that this property price surge will be short lived. Lockdown has caused homeowners to reassess their living situation. This has lead to more people to desire larger gardens, office spaces and more space overall. This combined with pend up demand because of Brexit has caused a surge in moves and has subsequently caused house prices to rise. Stamp duty changes have also caused an incentive for people to move now rather than later.
That being said, unemployment will soon rise when the furlough scheme comes to an end in October. Also people who took payment holidays from their mortgages will have to repay these payments. Therefore, people are about to undergo financial stress. This may cause property prices to come back down.