The property market has been uncertain in the UK for some time mainly thanks to BREXIT which dominated the news for what seemed like forever. There were warnings of a stock market crash and this general economic uncertainty led to potential buyers and sellers holding off investing or moving until some type of concrete decision was reached.

Then in January we appeared to be entering a time of greater stability and optimism. Boris Johnson won the election with a landslide victory and this caused house sales to rise by 12%. It seemed as if buyers and sellers were finally awakened from the Brexit nightmare and all seemed set for a return to normality.  As we all know this was a short lived respite. Now the Coronavirus has wreaked worldwide chaos, estate agents have shut their doors, and most property deals are off!

The Coronavirus, Covid-19, will not last forever, and surely there will be light at the end of the tunnel one day, but so far the true implications of the economic crisis remain unknown.

According to estate agents and forecasters, it is predicted that the number of house sales will plummet in the UK.  Zoopla states that they are expecting 60% reduction in house sales over the second quarter of the year, when compared to 2019 figures.

The effect upon house prices remains unknown. There are no figures available and although house prices did rise at the beginning of the year, according to Nationwide and Halifax, this was curtailed once we all went into lockdown.

Once we all emerge from lockdown, the future looks very uncertain. It is highly likely that that many people will be facing evictions and repossessions thanks to insolvency and job losses. This could lead to a rise in the rental market so this area may be one that is worth investing in.

According to Zoopla, this outlook largely depends on how the government’s package of support for businesses and households reduces the scale of the economic impact.

That said if you are in a position to buy it might be a good time. Mortgage rates are currently low and it seems very likely that house prices will take a down turn so it is possible that the Coronavirus may have some financial advantages for buyers.

For sellers the future may not be quite as rosy.  You may be in a position of owning a house and wanting to sell but you may do better hanging on and renting it out until the economic market becomes more stable.

The financial experts are predicting an economic crash that will be worse than the crash of 2008 and possibly as bad as the 1929 depression. The Office for Budget Responsibility warns that the UK economy could shrink by 35% and cause 2 million job losses.

Overall, selling your house in 2020 may not be a good move unless you cannot avoid it. The housing market will recover and of course, nobody knows the future but for now the sensible option may be to hold tight and keep your options open.