Virtually every market has seen a downturn since the lockdowns, and the new measures were introduced because of the devastating COVID-19 pandemic, which includes the real estate market. In the United Kingdom, at the height of the national lockdown, industry experts were predicting that property prices in the UK could drop as much as 10%.

However, since the government introduced a new stamp duty threshold, the market has begun to become much more stable. The UK’s stamp duty threshold has been raised from £125,000 to £500,000 until the end of March 2021. Since the stamp duty reduction announcement, real estate agents have seen inquiries for properties valued at between £400,000 and £500,000 increase by a staggering 49%. The market is still unstable, though, and only time will tell whether industry experts are right in their predictions for the property market’s future.

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Rightmove Predictions

Rightmove is the largest online real estate portal and property website in the UK. According to a recent release from Rightmove, the average asking price for a property in England has risen by an average of 1.9%. Analysis of the sale prices shows buyers have been, on average, agreeing to pay 97.7% of the asking price, which is up from 96.6% for February 2020. Even in standard property market conditions, it is difficult for sellers to achieve a quick sale for the highest price possible. So, during these unprecedented times, many sellers are looking to use real estate agents that buy any property in any condition so that they can achieve a quick sale. SellHouseQuickly specialize in the London market and the M25 area, so check the company out if you want to sell your property quickly in that region.

Savills Predictions

According to the global real estate services provider Savills, price growth of properties on the UK market is expected to increase over the next five years. However, Savills have said that that is dependent on the recovery of the wider economy. Savills also expect interest rates to stay lower for longer. With low bank base rates and an increase in mortgage lending, the UK market should remain relatively stable and recover quickly.

Knight Frank Predictions

The residential and commercial real estate agent Knight Frank expects property prices to drop in the short term and expect a bounce-back of 5% in 2021. Knight Frank forecast 728,000 property sales in the UK for 2020, which is a decline of 38% compared to 2019 levels. In April, Knight Frank was predicting a drop of only 3%. The real estate agent also states that residential properties should become more desirable, but due to changes in the way businesses are now operating in this “new normal,” commercial properties could become less desirable.

Zoopla Predictions

The British company Zoopla focuses on providing people with access to information such as sold house prices and area trends for residential and commercial properties. Zoopla has stated that demand for homes in England after the property market reopened increased by 88%. Zoopla also notes that property prices will be largely influenced by the unemployment rate in the UK, which is still unstable as many businesses are still not in operation or full-operation. A Zoopla survey also found that 60% of people who were planning to go ahead with property plans that were delayed because of the lockdown will continue with their plans, whereas 40% are putting their plans on hold until they see how the pandemic and the lockdowns play out. Zoopla has said that the number of agreed property sales is steadily rising since the market reopened, but it could take considerable time for those numbers to rise significantly.