In the current coronavirus climate it’s important to keep an eye on the impact on the property market, and The Guardian has recently reported that UK house prices have jumped at the fastest rate in four years. In October the average price of a home in the UK topped £250k for the first time since June 2016, with prices up 7.5% from last year.
However, mortgage lender Halifax said that the market would slow over the coming months because of new coronavirus lockdown rules and a weaker economic backdrop.
This latest insight from the property market sits on the prospect of the UK economy facing a double-dip recession as harsh new lockdown controls come into force, putting many businesses across the country under strain and threatening to drive up job losses.
“While government support measures have undoubtedly helped to delay the expected downturn in the housing market, they will not continue indefinitely,” said Russell Galley, Halifax’s Managing Director.
“As we move through autumn and into winter, the macroeconomic landscape in the UK remains highly uncertain,” Mr Galley said.
“Though the renewed lockdown is set to be less restrictive than earlier this year, it bears out that the country’s struggle with Covid-19 is far from over,” he continued. “With a number of clear headwinds facing the housing market, we expect to see greater downward pressure on house prices as we move into 2021.”
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