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UK housing market could bounce back in Q4 2020

Housing market activity is on track for a drastic fall this summer, as significantly fewer homes change hands due to the COVID-19 pandemic. 

Property prices were stable in March, but the collapse in market activity as a consequence of the coronavirus outbreak is expected to place downward pressure on prices. 

House prices hit an average of £240,384 in March, slightly down from the record high £240,461 recorded in February, according to Halifax.


Property values are up 3% year-on-year indicating that the market was on an upward trajectory, but it is clear that this will not continue in the short-term. 

However, market conditions could improve in the final quarter of the year, according to Tomer Aboody, director of property lender MT Finance. 

Abody said: “What a start to the year the housing market had, with positivity so strong that it stood a good chance of lasting the full 12 months. 

“The year-on-year increase in values and transactions indicates that buyers and sellers had got over the Brexit debacle and were getting on with their lives.

“Of course, coronavirus has now cast a very dark shadow over the property market and wider economy. 

“If the crisis is tackled properly by the government and indeed the country as a whole, then hopefully by the final quarter some of that positivity which we saw earlier in the year will have a chance to return.”


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Poll: Do you think the housing market will bounce back later this year?


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    Sounds to me like someone trying to talk the market up, after this banks will want much larger deposits the risks are just too great for them and who can blame them, as I have said before large mortgages are a mugs game, too many people have been living a false life style on too much debt, time for a change.


    I think so. I keep my borrowings low and I'm always told that it's foolish to play like that. I'm not interested in having a gigantic portfolio with 75% loaned up.

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    • 08 April 2020 18:50 PM

    The new norm for BTL will be max 60% LTV.
    LL should aim for no more than 50% LTV.

    Aspirant homeowners will need substantially larger deposits.
    One can't blame the banks etc for their reticence to give out higher LTV loans.
    Nobody has the right to the loan they want.
    Lenders are more concerned about preserving their current loan books.
    They are not obsessed with chasing market share currently.
    Income preservation is more their concern.
    LL and homeowners alike will need to get saving as much as they can as lenders will require far more 'skin in the game' from anyone seeking to obtain a mortgage.
    Perhaps no bad thing.
    This will mean the cash rich can make lots of hay as they will face much reduced competition from leveraged participants.
    In a stressed market cash is always king!!!!


    That's what my old accountant always told me '' cash is king'', many yrs ago a ''proper'' bank manager once said to me '' borrow money to make money boy, don't borrow money to sustain a false life style'' all very good advise, loans and mortgages are going to be very hard to get now, and that is no bad thing, 50% in 50% borrowed max, just common sense isn't it ?

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    • 08 April 2020 20:12 PM

    It is my belief that the mortgage market in general will become far more conservative.
    This will force people to make hard domestic choices
    Those who desire to have it all now will continue to be tenants.
    Those who wish to go through the hard grind of saving and going without for years will eventually achieve home ownership.

    The feckless tenants will still moan that they can't afford to buy yet will still refuse to accept that it is their feckless behaviour that prevents them from becoming homeowners.

    Remember there is nothing wrong in becoming a homeowner where you can afford and take in lodgers and rent where you need to be.


    Spot on Paul, but snowflakes and the '' I'm entitled generation will never see it that way''', my first home cost me £5k in 1979, small and derelict, 2 yrs later I sold it for £11k went to an auction and bought another derelict property, cost me £22k I borrowed £3 k from Bank over 3 yrs, had it payed off in 1 yr, lived in a caravan in back garden while renovating , done more since and lived in more caravans, today it is fair to say that I am a wealthy man, nice home, 16 rented properties and no borrowings, work, work, going without, driving beat up old vans has got me here, and you know what, I have enjoyed the journey all the way, and I still buy derelict properties at auction and get in there myself, odd guy? yes but that is me, no time for wingers like that spoil brat Kate

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    • 09 April 2020 00:56 AM

    Totally agree with your work and sacrifice mindset.
    Something you have pertinently pointed out doesn't exist in the snowflake generation.
    They are the mugs!!
    They are so stupid they don't realise they are mugs.
    But they certainly resent those that haven't been mugs!

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    • 09 April 2020 00:56 AM

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    Hey guys, I’m from the snowflake generation and I totally agree with what you’re saying. Tenants lifestyles don’t allow them to save but if they change their mindset, they will eventually get into the property ladder. I think during the next year or two however, saving a large enough deposit for anywhere down south will be impossible unless you have rich parents to loan you the deposit etc. A standard 2 bed terrace costs roughly £300k and I don’t know many that can find a £150k deposit. Up north however yes this is possible. You could save around £75k for a 50% deposit on a crappy flat down south, but you’ll be stung with maintenance and ground rent and a lease that’ll eventually expire.


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