House prices could fall by up to 20% this year in a worst case scenario for the economy, according to Jefferies.
The market analyst reports that the stock market is already pricing in a 12% drop in house prices, as a consequence of the Covid-19 outbreak.
A 20% fall would knock £49,900 off the average £234,700 selling price.
Savills also predicts that property prices will fall this year, albeit at a reduced rate of between 5% and 10%.
Knight Frank has revised its short-term forecast for the UK’s housing market, but offers a more optimistic forecast, with UK house prices to fall by 3% in 2020.
Looking longer-term, all three firms expect prices to rise annually between 2021 and 2024 as the economy recovers.