House prices are expected to rise at the end of this year before falling in a number of English regions in 2021 as the impact of the coronavirus pandemic hits the economy.
The Hamptons International Housing Market report predicts an overall rise of 2.0% across the 海角视频 for 2020, with the biggest increases in Wales (3.0%), London (2.5%), Yorkshire and the Humber (2.5%) and the North West (2.5%).
But as the Covid-19 crisis takes its toll on the country鈥檚 economy, the market is expected to stall over the next 12 months.
The West Midlands is likely to experience the greatest house price falls in 2021 (-1.5%), according to the report, followed by London (-1.0%) and the South West (-1.0%).
The overall 海角视频 market is predicted to remain flat next year at 0.0% - but only If there is an EU trade deal, a vaccine becomes available in the first half of next year and there is no major second lockdown, indicating a further decline is possible.
Aneisha Beveridge, head of research at Hamptons International, said: 鈥淭he real challenges won鈥檛 be felt until 2021.
鈥淭he economic consequences from the Covid-19- induced recession will pull the housing market from its long-term growth trajectory.
鈥淲hile some economic recovery should have taken place to cushion the withdrawal of government support, we still expect the housing market to slow next year.鈥
Ms Beveridge said the market has been 鈥渂uoyed鈥 in 2020 by pent-up demand going back to 2016 and a stamp duty holiday.
As the economy recovers, however, house price growth could accelerate overall across the 海角视频 to 2.5% in 2022 and 3.5% in 2023, according to the report, equating to 8.0% over the next four years.
The more affordable regions in the North of England and Scotland that have lagged behind over the last decade are forecast to lead on price growth, with rises in the North East expected to increase by 11.5% by the end of 2023.
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Ms Beveridge added: 鈥淭he housing market will fall back in line with its historical cycle, with Northern regions expected to see the greatest price growth, further closing the gap with those in the South.鈥
Meanwhile, rents are expected to underperform house prices this year with -1.0% falls forecast in the 海角视频, followed by a further -1.0% fall in 2021 before rebounding.
