UK house prices

Britain’s housing boom… will fizzle out

PHOTO: This graph shows the change in house prices over the past four years across all the nations of the UK, with prices set to drop after the steep rise post-lockdown

  • Google search data shows clicks on the main property sites peaked in August but dropped by 7% this month
  • Experts warn housing prices could fall by up to 3.7% as a result, wiping up to £7,350 off the average home 
  • The housing market boomed after Chancellor announced a stamp duty cut and pent-up lockdown demand

Housing prices are expected to fall next year after the post-lockdown market boom fizzles out, experts have warned.

The initial housing boom was partly fuelled by pent-up buyer demand as the nation emerged from lockdown, various housing market reports have suggested.

Stamp duty tax cuts announced by Chancellor Rishi Sunak also led to increased demand.

But online searches for the UK’s main property websites have dropped after their initial surge, with forecasters warning this signals the end of the market upturn.

Google search data suggests showed a drop off in the number of potential buyers visiting the three main property sites.

Analysis by Pantheon Macroeconomics found interest in key phrases, such as ‘Rightmove’, ‘Zoopla’ or ‘On The Market’ slowed from a peak in late August, dropping by seven per cent in September.

Samuel Tombs, chief UK economist at the analysis firm, said: ‘Online search data suggest the initial wave of demand for bigger homes caused by Covid-19 now is fading… Recent gains in house prices likely will not be sustained.