Scenario 1 House price inflation could drop to 2.1% from its current 3%. This scenario anticipates the number of transactions decreasing as the pent-up demand works its way out of the market. Furthermore, the negative economic growth has not yet filtered through to house prices. Scenario 2 High price inflation moves in sympathy (grows with 4%) with inflation under this scenario, where the economy recovers to pre Covid-19 levels over the next couple of years with little economic growth over the long term.
Scenario 3 In Scenario 3 new lockdown life increases the demand for residential housing, particularly luxury housing and house price inflation could rise to 5.2%.
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Best to all, Margie, Clare, Fiona, Terry, Arlene, Brigitta, Alison & Jane