Residential real estate price forecast change in United Kingdom 2020-2021

The end of the stamp duty holiday, combined with the economic impact of COVID-19, could lead to a housing price drop in the UK of over ten percent in 2021, according to a domestic analysis in September 2020. The housing market of the United Kingdom was not as affected by the coronavirus in 2020, due to a cut in a tax UK residents pay when buying residential property over a certain price, the so-called stamp duty. This cut (or holiday) exists until March 31, 2021, and already lead to a buyers rush. The source mentions that the generosity of this cut would have a big impact on transactions in 2020 (and therefore the price). This would lessen in 2021, however, as the effects of the tax cut would wear off and unemployment would keep increasing.