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Warning signs are flashing red for the property market as indicators suggest prices could plunge by 6%+.
@MariannaHunt5 reveals 5 things the data is telling us about a slump and how the end of the stamp duty holiday could make things worse (a #thread
) https://www.telegraph.co.uk/property/buy/falling-house-prices-forced-sales-fears-five-reasons-property/
@MariannaHunt5 reveals 5 things the data is telling us about a slump and how the end of the stamp duty holiday could make things worse (a #thread
) https://www.telegraph.co.uk/property/buy/falling-house-prices-forced-sales-fears-five-reasons-property/
Property values are already starting to fall, with the drops accelerating each month, according to conveyancing quote data from @reallymoving
Values could slump even further as those who miss the stamp duty holiday try to negotiate a price cut with their seller…
The end of the stamp duty holiday will distort prices further, as history shows
When the current tax holiday ends, on the very same date, there will be an "inevitable" drop in demand, according to @Savills.
@CapEconomics has forecast house price falls of 5% in 2021…
The fallout will be concentrated in certain regions, with around 325,000 buyers predicted to miss out on the tax saving, according to @TwentyCi
In the South East, almost 50,000 people are expected to miss the deadline…
The slump will come at the worst possible time, as the end of April sees the life support of furlough turned off.
Unemployment affects how much people can pay for property, so house prices tend to fall when the jobless rate rises
Those who lose their job may end up defaulting on their mortgage repayments and find their house is repossessed by their lender.
Forced sales negatively impact on prices, as repossessed homes tend to be sold quickly at a discount
There's a whole lot more analysis and reaction in @MariannaHunt5's report here: https://www.telegraph.co.uk/property/buy/falling-house-prices-forced-sales-fears-five-reasons-property/
#StampOutTheDuty
#StampOutTheDuty
