House prices fall by £2,000 in a month as property market hits a standstill
HOUSE prices in the UK have fallen by almost £2,000 in a month, new figures reveal.
It comes as the property market has hit a near standstill due to the coronavirus crisis.
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The average property price across Britain is down from February's record high of £240,461 to £238,511, according to Halifax.
Yet the prices in April 2020 were 2.7 per cent higher than the same month a year earlier.
Last April, the average house price was £232,143 – but that has now jumped nearly £6,500 to £238,511.
Property values have fluctuated in price over the past year but increased significantly in December, which housing experts said was due to the result of Boris Johnson's landslide victory in the election.
The rise in price – which was also 0.7 per cent higher compared to the last quarter – is thought to be based on mortgage approvals prior to lockdown.
But values also fell by 0.6 per cent since last month, which Halifax said was due to the impact of coronavirus.
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Social distancing has impacted people being able to view properties in person and estate agents being able to conduct valuations.
These have often taken place over the internet instead, which may have put off prospective house buyers.
Russell Galley, managing director at Halifax, said: “It will not be until after lockdown restrictions are eased that we will get a sense of the new temporary normal conditions for the housing market.
“More immediately, we are likely to see some considerable movement in activity levels as buyers and sellers seek to kick-start previously agreed transactions which are likely to have stalled or been delayed.”
He added: “The future remains uncertain and based on our current forecasting we expect short term headwinds to house prices, although we maintain our underlying confidence in the health of the housing market in the longer term.”
Halifax’s analysis comes as banks predict house prices will drop significantly in the future.
Lloyds has said it expects house prices to fall 5 per cent due to Covid-19.
Meanwhile banks are offering payment holidays to Brits who have been affected by the outbreak.
And we’ve compiled a guide about what happens if you have been furloughed and you have a mortgage.
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