Conveyancing portal Reallymoving.com has predicted that house prices will surge by 8.1% between June and October this year, jacking up the annual price rise to 11.4% for 2020.
The portal has pinned its extraordinary forecast on the property sales boom currently under way in many areas of the country, and which would push up the average value of a home in the UK by just over £25,000 to £333,331.
Strong demand among home movers is being stimulated by their dissatisfaction with existing homes during lockdown; significant pent-up demand from the spring months when the market was stopped in its tracks and from previous Brexit uncertainty, topped off with the boost delivered by the Chancellor’s stamp duty giveaway.
Reallymoving says it can see future demand for property because thousands of home buyers register for quotes for home moving services including conveyancing up to 12 weeks in advance of their purchase completing.
“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,” says Rob Houghton (left), CEO of Reallymoving.
“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.
“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.”