could fall by 13.8% next year, once the government’s temporary cut on stamp duty ends and the economic impact of coronavirus hits the property market.
Commenting on the forecast, Nisha Vaidya, mortgage expert at Bankrate UK, said: “It was recently announced that house prices are rising at their fastest rate in 16 years, but we’re hearing predictions that prices may soon drop dramatically in the next 12 months. These reports clearly show the current unpredictability of the UK housing market, which reflects the deep uncertainty in the wider economy.
“This leaves potential buyers and sellers with a real dilemma about how to proceed. Those looking to sell and downsize their home may want to do so quickly to take advantage of the current price surge. But first time buyers may decide it’s better to wait until the market settles down and prices stabilise.
“Given the current market turbulence, any potential buyers and sellers should read up on their options and carefully compare mortgage deals to help them understand the long-term implications of any decision they make.”