According to a market analyst in a worst case scenario house prices could plummet by 20% because of the pandemic’s effect on the economy.

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The firm is also reporting that the stock market is factoring in house prices dropping by 12%.

The average house price stands at £234,700 but with a 20% reduction £49,900 could be taken off of the selling price.

However an estate agent’s prediction for falling house prices during 2020 is not so catastrophic and believes it will be between 5% and 10%.

Another estate agent has just revised its UK housing market forecast for 2020 with just a 3% reduction.

All three firms are far more positive for their longer term predictions and are confident that house prices will enjoy an annual rise between 2021 and 2024 as the economy recovers.

Housing Market will Recover Quickly

The UK housing market is bound to bounce back once the Covid–19 crises has passed, according to Guy Gittins, M.D. of a London estate agent.

He said: “The bottom line is that people still need to move, still trust property as a solid long-term investment and are not expecting prices to change dramatically as a result of the pandemic.”

The agent’s branches are now using video viewings because physical viewings are banned and Gittins says that London’s sales market is still active, but is obviously much quieter than pre Covid–19.

The firm reports that during the first two weeks of lockdown, it had agreed 88 new sales with more to come very shortly from its 250 new sales offers made during that period.

Unsurprisingly the agent’s branches in March have reported their online viewings of properties were 13% higher than in March 2019, and there have also been 500 potential new buyers since the lockdown.

In the first few days immediately after Boris Johnson’s announcement of the lockdown, activity was virtually non-existent, however it did start to improve by the end of the week.

Gittins added: “Although normality sometimes feels like a lifetime ago, restrictions will be lifted at some point and once that happens, we are anticipating a bounce as the pent-up demand is released over the months following.”