Hamptons International forecasts zero house price growth in Great Britain during 2021.
This assumes a positive scenario of an EU trade deal being agreed upon, no major second lockdown occurring, and a Covid-19 vaccine becoming available in H1 2021.
Within this sceptred isle next year, Hamptons sees the West Midlands housing the biggest prices falls, of 1.5 per cent, along with London, where it says prices will drop by 1 per cent.
The biggest gains are likely to be of 1 per cent and located in the East, the North East, Yorkshire and the Humber, and Wales.
The estate agent expects house prices to rise by 2 per cent this year, meanwhile, with the biggest gains of 3 per cent located in Wales and 2.5 per cent in London and Yorkshire and the Humber.
The East of England and the West Midlands are where the smallest rises are expected to be this year, at 1 per cent apiece.
Eventually, by 2023, Hamptons believes that a house price rises, including 11.5 per cent gains in the North East and 6 per cent in Greater London, will contribute to an overall four-year rise of 8 per cent throughout Great Britain.
In terms of rents, Hamptons has forecast a fall of 1 per cent in 2020 and a drop of 1 per cent again in 2021, recovering in 2022 by 2.5 per cent.
Hamptons head of research Aneisha Beveridge comments: “We believe house prices are set to rise across Great Britain and will end 2020 having picked up from where they started at the beginning of the year.
“But the real challenges won’t be felt until 2021. The economic consequences from the Covid-19- induced recession will pull the housing market from its long-term growth trajectory. While some economic recovery should have taken place to cushion the withdrawal of government support, we still expect the housing market to slow next year.
“In line with a gradual economic recovery, we forecast house prices to rise again in 2022 and 2023. The housing market will fall back in line with its historical cycle, with Northern regions expected to see the greatest price growth, further closing the gap with those in the South.”
