Phil Spencer has waded into the post-lockdown housing market debate with advice that not all estate agents might want to hear, including that downward price negotiations will be an increasing reality in the coming weeks and months.
The TV presenter and MoveIQ founder made the comments yesterday in a candid interview with HELLO! Magazine in which he advises some buyers to wait and see what happens once the expected economic downturn arrives following the end of the furlough scheme and other government economic support during the pandemic.
“Personally, if you weren’t in a massive hurry and you hadn’t found somewhere you were completely in love with, then I’d sit on the fence for a little while and see how things settle down,” he says.
“Time will tell. There is uncertainty out there in the world – and if you can avoid making a big financial decision, I would.”
Phil Spencer, who also urges keener buyers to ‘crack on’ with their purchase, told the magazine that he predicts an immediate 5% dip in house prices and a 12% dip overall during the next 12 months.
“But house prices are not going up – that much is absolutely certain. It depends on consumer confidence and how long [the economy] takes to come back.”
Spencer also thinks that mortgages may prove harder to secure as banks and building societies look more closely at each applicant’s personal financial position, including the industry sector they work in.