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U.K. House Prices Set for 14% Drop Next Year as Support Ends

Temporary measures such as sales tax break have boosted values
Prices forecast to begin falling significantly toward year-end

Sales boards outside residential properties in London, U.K. — Sales boards outside residential properties in London, U.K.Photographer: Jason Alden/Bloomberg

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September 14, 2020, 9:34 AM UTC

U.K. house prices are set to plunge next year as government support measures to kick-start the economy after lockdown expire.

Average house prices will fall by nearly 14% from 2020 levels, according to the Centre for Economics and Business Research. The decline will begin toward the end of this year and continue in the first half of 2021, though a brief spike is possible when a temporary sales tax break ends in March.