A recent report by RICS indicates that the British housing market is experiencing a significant impact from the raging coronavirus pandemic. While the RICS headline house price balance stayed positive for the month of March, coming in at +11, after a reading of +29 in the previous month, the three month outlook sank into negative territory, coming at -82.

The 12-month outlook is also in the negative, with a reading of -38, indicating extended pessimism about the state of the housing market. Surveyors anticipate that house prices and house sales will be lower over the coming year, possibly because of potential job losses among consumers due to the coronavirus crisis.

According to RICS chief economist Simon Rubinsohn, “The legacy of COVID-19 could be such that any return to what might be described as ‘normality’ in the economy will take time and households will remain cautious for a while.”

Consumer confidence in the housing market is also likely to dampen and take longer to recover as households could remain cautious about making big ticket purchases even after the situation stabilizes. RICS recommends offering a holiday on property purchase tax as one possible way to boost activity in the market quickly as the economy attempts to work towards normalcy after the pandemic is brought under control.