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House prices could drop 13% says consultancy

An economic consultancy predicts house prices will fall by a sixth as unemployment grows across Britain this year.

The consultancy, Cebr, says Yorkshire and East Anglia are expected to be the hardest hit with prices dropping 16.5 per cent over the rest of 2019 because of the Coronavirus crisis.

The drop would take up to £38,000 off the price of an average UK home, around 13 per cent, although Scotland and the south east of England will see drops of only 10.5 and 11 per cent.

Cebr warns that the largest falls may be in unemployment-driven regions like Yorkshire and Humberside which has some of the highest proportion of workers in manufacturing, construction and retail sectors.

The South West is expected to fall 13 per cent, Wales 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.

CEBR also says landlords may be hit as tenants find it increasingly hard to pay rents in full and on time.

The consultancy says a squeeze on incomes “has a tremendous potential to disrupt the UK’s housing markets”.

An economic consultancy predicts house prices will fall by a sixth as unemployment grows across Britain this year.