With the coronavirus pandemic plaguing the world for the last several months, the UK has officially gone into recession.
The economy crashed and the GDP reduced by 20.4% between April-June – the largest recession since records started. This, along with the record levels of unemployment, has the whole country worried. But homeowners have another question in their minds. What does the recession mean for their house value? Sell My House Quickly Dover looks into the facts and how homeowners will be affected by this recession.
Since the start of the lockdown in March, we’ve seen decrease in house prices through April and May. Before the recession was announced, house prices were decreasing, and experts were sure that this drop would continue into 2021. With the recession on top of this, house prices are due to drop further. This could be devastating news for homeowners who were looking to sell their houses in the next year or so, as their value will be dramatically lower than previously expected. The Resolution Foundation has predicted that house prices will decrease by a huge 22% over the next year, which would be a terrifying drop for any homeowner, but especially those with equity in their property that they’re looking to unlock in the coming months.
Buying a house is one of the biggest investments that you can make, so the decrease in value is causing panic across the board. Homeowners who were looking to sell in the coming months are having to make a big decision; bring their plans forward and sell now, or wait for the recession to end and for the economy to start growing again. Both options have their risks, but with no one able to say when house prices will get to where they were at the start of the year. Homeowners are leaning towards selling sooner rather than later to avoid the extreme hits expected in the coming months.
Contact Sell My House Quickly Dover now!