You are here: Home - Mortgages - First Time Buyer - News -

Half a million home sales set to be ‘lost’ in 2020

Written by:
Half a million home sales are set to be ‘lost’ in 2020 from the fallout of the coronavirus, according to forecasts.  

Home sales are expected to plunge by 38 per cent if the current lockdown lasts until the beginning of the June, estate agent Knight Frank predicted.

Prices are likely to fall by three per cent.

A sharp recovery will be seen in 2021, with eight per cent of growth pencilled in for prime London homes.

However, this expansion in sales will not fully offset the losses seen this year, Knight Frank said.

The outturn will be overall determined by the timeframe imposed by the lockdown.

Less than half recovered

Liam Bailey, global head of research at the agency, said: “The underlying economic forecast we have adopted points to a contraction of GDP of four per cent in 2020 and growth of 4.5 per cent in 2021.

“Of the nearly 526,000 sales we expect to be ‘lost’ due to lockdown this year, less than half will be carried into 2021.

“For the government to see a full recovery of the market, with all of these ‘lost’ sales carried forward, there will be a need for substantial incentives to ease market liquidity – including a reduction in stamp duty.”

Knight Frank predicted that the number of tenancies agreed in the prime markets across London and the Home Counties in 2020 will be around 25 per cent below the five-year average.

Bailey added: “Once the current crisis passes and activity begins to resume, we have to expect weaker economic activity in the first half of 2020, the dislocation in the jobs market and weakened consumer sentiment will impact on prices, however the relatively finite timespan of the crisis means declines will be limited.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape for summer, and moving your cash savings to a higher paying deal is ...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Young, low paid and women to be hit hardest by Covid-19 shutdown

Women, young workers and the low paid will be hardest hit by the coronavirus lockdown, a study reveals.