House Prices Falling - Temporary Blip Or Start Of a Trend?

HOUSE PRICES – are taking a hit due to the pandemic.

The latest index shows house prices are down -1.7% month on month, although they are still 1.8% higher on an annual basis. Whether this is the start of a trend or just a blip who knows.

Marc von Grundherr, director of London letting and estate agent, Benham and Reeves, commented:

“You may well smell blood and believe that the sharks are now circling. But before you jump in and join them, remember that these numbers are taken from a paralyzed property market and anything other than a reduction would have been somewhat miraculous.

As the market tries to find its feet operationally a further decline should be expected over the coming months and would certainly not be out of the question.

However, as estate agents and other industry professionals adapt the the new norm of selling homes after lockdown, the market will begin stretch its legs and any predictions on the demise of the UK property market will turn out to be greatly exaggerated

Much like we saw during the Brexit process, those looking to talk both the market and house prices down are, more often than not, doing so for their own gain.”

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