Average house prices are expected to reach an all time high in December, according to reallymoving’s House Price Forecast for October 2020.
Reallymoving expect to see the average price of a house in England and Wales hit £342,511 in December 2020.
However, the forecast shows that house prices are predicted to dip in January 2021, falling by 1.2%.
Annually, house price growth will remain high over the next three months, peaking at 17.5% in December.
According to reallymoving, the expected increase is attributed to the stamp duty holiday and the post-lockdown surge.
As this trend is not expected to continue, reallymoving believe house prices will begin to fall from January next year.
Rob Houghton, chief executive of reallymoving, said: “As predicted, the New Year looks set to herald a change in fortunes for the housing market following an exceptional summer and early autumn, which has pushed prices to record highs.
“But it was never sustainable. House prices cannot continue to defy macroeconomic influences such as rising unemployment, shrinking economic growth and the prospect of a No Deal Brexit at the end of the year.
“While we will continue to see positive growth through to Christmas based on deals already agreed, momentum is now slowing and we expect to see a reversal in the recent spike in house price growth over the first quarter of 2021.
“One of the biggest challenges facing buyers going forward will be securing mortgages, particularly for first time buyers with small deposits, the self-employed and those on furlough which has now been extended to the end of March.
“Government intervention to support first-time buyers may be necessary next spring to prevent the market from stalling.”