Are house prices set to fall in the coming months?

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 outlook for the year ahead is still looking positive which is good news for sellers but could hold back first-time buyers.

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 31^st 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.

Property market growth to date

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.

Thinking about taking advantage of the Stamp Duty Holiday?

If you are thinking about taking advantage of the Stamp Duty Holiday I recommend starting your mortgage application as soon as possible to avoid possible delays.

I can help take you through your options and different lenders.

Thanks for reading…

Call 01625 548248 or email enquires@mortgagesavers.co.uk

You can also enquire via our website https://mortgagesavers.co.uk/