The UK housing market is facing a potential 10% decrease in house prices in 2021, according to a recent report from Santander. This could be a significant blow to homeowners, investors, and the economy as a whole.
The report from Santander suggests that the UK housing market is likely to be affected by the economic fallout from the coronavirus pandemic. The report states that the UK economy is likely to suffer a contraction of 11.5% this year, and that this will have a direct impact on house prices.
The report also suggests that the UK housing market is likely to be affected by the uncertainty surrounding Brexit. The UK officially left the European Union in January 2020, but negotiations over the future relationship between the two sides are still ongoing. This uncertainty has caused many potential buyers to delay their purchase decisions, which has had a negative impact on house prices.
The report also suggests that the UK housing market could be affected by a lack of available credit. Many lenders have tightened their lending criteria in response to the economic uncertainty caused by the pandemic, making it harder for potential buyers to secure a mortgage. This could further reduce demand for housing and put downward pressure on house prices.
It is important to note that Santander’s predictions are just that – predictions. The actual impact of the pandemic and Brexit on the UK housing market remains to be seen. However, it is clear that homeowners, investors, and the economy as a whole could be facing a difficult year ahead.