Warning signs are flashing red for the property market, as key indicators suggest house prices could plunge by more than 6pc. Property values could even start to fall before the stamp duty holiday comes to an end on March 31, experts have warned. The return of the tax is expected to accelerate the slump and cause tens of thousands of sales to collapse, as buyers pull out of purchases that suddenly become unaffordable.
House prices are already falling
Property values are starting to fall, with the drops accelerating each month, conveyancing quotes suggest. Buyers seek these out after agreeing a deal, stating the price they have agreed to pay for their home. It usually takes 12 weeks between obtaining a conveyancing quote and completion, so they give an early indicator of what sale prices will be in three months’ time.
Reallymoving, a comparison site, analysed 24,000 conveyancing quotes and found that agreed prices fell by 6.2pc between October 1 and December 31 2020. This suggests that sale prices will fall by that amount by March 31.
By Marianna Hunt , please read the full article on The Telegraph.