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CORONAVIRUS UPDATE

See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 283,311 | UK Deaths: 40,261 SEE MAP Italy Confirmed cases: 234,531 | Italy Deaths: 33,774 | Italy Recovered: 163,781 SEE MAP Spain Confirmed cases: 240,978 | Spain Deaths: 27,134 | Spain Recovered: 150,376 SEE MAP See the latest Coronavirus statistics from across the world on our world map SEE MAP UK Confirmed cases: 283,311 | UK Deaths: 40,261 SEE MAP Italy Confirmed cases: 234,531 | Italy Deaths: 33,774 | Italy Recovered: 163,781 SEE MAP Spain Confirmed cases: 240,978 | Spain Deaths: 27,134 | Spain Recovered: 150,376 SEE MAP

TODAY'S OTHER NEWS

Housing market crash could be driven by the rental sector

Wage cuts and a surge in unemployment threaten to destabilize the housing market on an unprecedented scale, as the number of tenants who are unable to afford to pay their rent increases sharply, new research shows. 

The market has also stalled because buyers are unable to purchase property, and prices are likely to fall as a result. 

According to a report by the Centre for Economics and Business Research (CEBR), the economic pain of the COVID-19 epidemic has “tremendous potential” to disrupt the housing market, placing downward pressure on home prices and on the number of transactions in the housing market. 

With the coronavirus crisis having a devastating impact on incomes, the study found that residential property prices could drop by an average of up to 13% by the end of this year.

The data published by the CEBR comes after the same think tank warned that the current lockdown has shrunk economic activity by 31%. 

Yorkshire and East Anglia are expected to be the hardest hit with property prices set to drop by 16.5% this year, followed by a 16% drop in the North West and West Midlands. 

The plunge in prices would take up to £38,000 off the price of an average UK home.

"Although the government have offered up a vast package of support, this lack of demand will mean some businesses cease to operate, many workers will lose their jobs and a lot more will face a cut in incomes," the CEBR warned.

"Housing is the single biggest expenditure item for faced by most households, which means that the shortfall in incomes has a tremendous potential to disrupt the UK’s housing markets."

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    Buying opportunities for the bravest in the months to come. Carpe Diem!

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    Just like the stock market you buy in bad times, but with your own money not the banks, done that in early 90s, auction rooms empty and builders with no work, many people told me I was mad, who had the last laugh ?

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    I agree. I was laughed at by people for spending New Year and Easter holidays etc. dressed in my painting clothes, lugging rubble bags etc. I don't need to do that anymore and could now afford far more holidays than I have either time or inclination to take.

     
  • Paul Barrett

    Yep most people can't think long term.
    Most LL consider their investments over a 30 year term.
    Property is always the best deal over long terms.

    Most people live in the NOW and can't conceive of 30 years from now.
    More fool them!

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    Paul. Pity a lot of them were conceived about 30 years ago - but if they hadn't been, we wouldn't have had such demand to rent our properties!

     
  • Matthew Payne

    Lots of money to be made on the markets, many stocks are just articifially low becasue their businesses are mothballed. As long as they survive, as soon as they reopen their price will spring back, perhaps not all the way back, but a lot higher than it is today.

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