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‘Exceptional’ demand to push house price growth in autumn – Reallymoving

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  • 14/08/2020
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‘Exceptional’ demand to push house price growth in autumn – Reallymoving
House price growth will see a sharp spike when sales complete in the autumn due to “exceptional levels” of post-lockdown demand, according to Reallymoving.

 

The firm’s house price forecast uses agreed prices compiled from homebuyers who typically register for moving services 12 weeks before completions. It also accesses retrospective Land Registry price figures 

As a result, it predicted average agreed house prices to experience an annual increase of 11.4 per cent to £333,331 in October.

This will be a 6.1 per cent growth from September’s predicted average of £314,235. 

Compared to June’s actual average agreed price of £308,280, prices are expected to fall by 3.8 per cent in August to £296,485. Compared to August last year, this will be a drop of 1.4 per cent. 

Overall, Reallymoving is expecting agreed prices to grow 8.1 per cent between June and October. 

 

Potential for reverse 

However, the firm warned the drive in activity could be short lived if the economy and jobs market struggled to support itself without government and lender support. 

Rob Houghton, CEO of Reallymovingsaid: “We’ve seen an unusual set of factors come together this summer which has created a significant surge in housing market activity, yet we expect price hikes to be short-term.  

“The UK is now officially in recession and a sharp rise in unemployment is on the horizon when the furlough scheme comes to an end in October.

“Combined with the recommencement of mortgage repayments for thousands of homeowners who arranged payment holidays, households could find themselves under significant financial pressure.  

He added: “These factors will dampen demand for property through the late autumn and winter, which is likely to reverse the current spike in house price growth.” 

 

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