Liverpool estate agent Adam Sutton has warned that house prices could fall once the coronavirus recession kicks in.
Adam Sutton, founder of Adam Sutton Estates, spent years working in the real estate sector in London’s Canary Wharf before setting up his own property selling business in Liverpool.
He said: “Houses prices plummeted by an average of 15% during the 2008 recession. The economic turmoil we saw then is similar to the financial disruption we are witnessing right now so it is inevitable that house prices are going to crash.
“We’ve seen a sales mini-boom this summer but it is unlikely to last. Property prices are soaring now but a crash is inevitable when the full effects of the recession kick in.
“It isn’t scare mongering. We’ve seen property prices fall in the aftermath of every major recession and all the indications are that the economic climate is going to get even worse in the months ahead with the furlough scheme coming to an end, mortgage holidays ending, businesses closing and the consequential rise in unemployment. Some people will struggle to keep a roof over their heads.
“I don’t want to be the bearer of bad news but my advice to anyone thinking of selling is to do it now, or face having thousands of pounds slashed from their property values.”
The end of the stamp duty holiday, coupled with uncertainty over Brexit, are both a threat to house prices over the next year.
This post has originally been featured in Property Wire.