House prices are set to drop by the end of 2021 before growing
again the following year, according to JLL’s UK and London Residential
prices will continue to remain strong until the end of the ongoing stamp duty
holiday. Following this, house prices are expected to decrease and finish at
-1.5% by the end of 2021.
Housing transactions are expected to remain well below pre-Covid
level of £1.25m equating to less to 700,000 less transactions between 2020 and
Rental values are expected to drop by 1% in 2021, however by
2025 rents will increase by 10% due to increased housing demand.
The housing market is set to recover by mid-2022, reaching
pre-Covid levels. By 2025, JLL predicted UK house prices will have risen by
18%, averaging at a 3% price growth from 2020.
JLL head of UK living research Nick Whitten said: “The global
pandemic has left the housing market facing some headwinds in the short term,
which will put some downward pressure on house prices. However, it is also
accelerating a new trend in which our homes are becoming the centre of our
lives once again. We may be changing the way we work and the way we play, but
the one certainty remains - that we need places to live – and this is something
that is going to have a huge effect on the market as buyers, and renters alike,
change their living requirements.”