As the impact of the pandemic begins to filter through, annual house price growth slows to 1.8%. Prices are down 1.7% month-on-month, after taking account of seasonal factors.
Where next for the housing market?
“The medium-term outlook for the housing market remains highly uncertain, where much will depend on the performance of the wider economy.
“We have already seen a sharp economic contraction as a result of the necessary measures adopted to suppress the spread of the virus. Indeed, the 5.9% decline in UK economic activity recorded in March was only a little less than the decline recorded over the entire financial crisis.
“However, the raft of policies adopted to support the economy, including to protect businesses and jobs, to support peoples’ incomes and keep borrowing costs down, should set the stage for a rebound once the shock passes, and help limit long-term damage to the economy.
“These same measures should also help ensure the impact on the housing market will ultimately be less than would normally be associated with an economic shock of this magnitude.”
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