The housing market is expected to fall by up to a sixth as thousands of people face job losses as a result of the lockdown due to the COVID-19 outbreak
The UK was sent into lockdown last month to help tackle the coronavirus pandemic. Thousands of businesses were forced to shut to help protect public health, and as a result, many Britons then lost their jobs.
The housing market is expected to fall by up to a sixth as thousands of people face job losses as a result of the COVID-19 outbreak.
Yorkshire and East Anglia are expected to be the hardest hit with house prices dropping 16.5 per cent this year.
Yorkshire and Humberside are set to be the hardest hit according to reports, with many workers in manufacturing, construction, retail and leisure.
The next worst affected area is the North-West and West Midlands with 16 per cent falls.
The collapse in prices would take up to £38,000 off the price of an average UK home.
The crash will be driven by the rental sector as the amount tenants can afford to pay plummets due to wage cuts and unemployment.
Buyers being unable to purchase has also had an impact on the market.
The figures, published by the Cebr today, come after the warning that lockdown has shrunk economic activity by 31 per cent.
The think tank report said: Shortfall in incomes has a tremendous potential to disrupt the housing markets.
Overall, the average UK house prices will fall 13 per cent.
However, there are some regions that will fare better after the crisis.
Scotland and the South East will see the least change with drops of 10.5 per cent and 11 per cent.
According to the figures, the South West is expected to fall 13 per cent.
Meanwhile, Wales will drop 14.5 per cent, the East Midlands 12.5 per cent and London 11.25 per cent.
Northern Ireland will drop 16.5 per cent.
The news comes after former Bank of England boss Lord Mervyn King said the UK is well-prepared to deal with the economic impact of the coronavirus.
Lord King, who was the governor of the Bank of England during the Financial Crisis, has said Britain is in a good position to take on large amounts of debt despite going through 10 years of austerity.
He said: One of the benefits of being prudent in the last decade is that it is much easier to absorb a rise in the national debt. I don’t think we should worry today about the extent to which the national debt will rise, as long as we can get the economy back to function sooner rather than later.
He added that “trial and error” would be needed to emerge from the lockdown.
He also stressed the importance of the government being transparent in what is a difficult time for businesses globally.
The crossbench peer said the Government should be “honest about the difficulties” of opening the UK for business.
He also said the reopening of schools and some businesses should be considered to help re-start the economy. He said, I don’t think it’s sensible to just tell us all to stay indoors.
