What will happen to London house prices in 2020?

This year is expected to see half as many house sales as in 2019 because of the coronavirus outbreak, property website Zoopla has predicted.

The number of sales across the UK had been up by 11% compared to last year – until 23 March when lockdown began.

The government has said home buyers “should, where possible, delay moving to a new house while measures are in place to fight coronavirus”. While sellers can continue to advertise their properties, they have been warned against allowing any visitors into their home for viewings.

As a result, around 373,000 property transactions worth £82bn are currently on hold, reports This is Money.

While these may complete later in the year, Zoopla has said: “Our latest forecast is that completed sales will be 50 per cent lower in 2020 than 2019, allowing for a proportion of stalled sales to complete and with a delay to sales that would have progressed.”

Analysts have predicted a drop in house prices this year, particularly as the economy shrinks due to the coronavirus lockdown.

Knight Frank has estimated a 3% dip across the UK this year and a 2% dip for London. This prediction for the capital is echoed by London estate agent Chestertons.

“Despite the gloomy outlook for house prices this year, most analysts believe the housing market could make a strong recovery by 2021,” says City A.M.

Knight Frank forecasts that London house prices will jump 6% next year, while Chestertons puts the rise for central London between 3% and 4%.

Source: The Week

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