Real estate market felt the pressure of the coronavirus outbreak. Less deals were made and the market is in steep decline. It is considered a first wave of the negative effects. The second wave seems to be imminent as the economic downturn will reach more and more people.
House prices in Britain have fallen most sharply in May in more than eleven years due to the corona crisis, virtually freezing the UK housing market.
The average price of a house fell by 1.7 percent compared to April. This is the largest fall on a monthly basis since February 2009. Compared to a year earlier, the price rose, but was less marked than in April.
In May, public life in Britain was largely halted due to the lockdown measures, which had an effect on the housing market, because for example no viewings could take place. Nationwide thinks that people have become more reluctant to buy a house because of the economic damage caused by the crisis. House prices may drop even further.
The British government comes to the aid of homeowners who are in danger of financial difficulties because of the crisis. For example, banks must offer mortgage payment deferral.