Phil Spencer reveals his prediction for house prices in 2021 – it's going to get a lot worse...

What we can expect over the next year

Rightmove and Zoopla might have recorded record levels of interest in the wake of the property market re-opening. However, Phil Spencer predicts that house prices will go down over the next year.

Related: House prices see the largest drop since 2009 reveals Nationwide

Speaking to Hello Magazine, the property expert revealed what we can expect from the property market in the wake of coronavirus. When asked whether house prices will go down over the next year he explained that things are going to get a lot worse before they get better.

Phil Spencer's house price prediction

The answer depends on how long the restrictions remain and how deep the damage to the economy turns out to be,' the Location, Location, Location presenter told Hello. 'But what we can't factor in with the housing market is that so much of it is driven by sentiment and how people feel.'

Blue shirt with men and white background

(Image credit: VALERY HACHE / Staff/ Getty)

'So if they feel uncomfortable or nervous about the economy or their job – it will translate into not much happening in the housing market,' he explains. 'People won't feel like borrowing extra money.'

'But house prices are not going up – that much is absolutely certain! It depends on consumer confidence and how long it takes to come back.'

'My personal prediction (and I'm not an economist), would be about minus five per cent straight away. And minus about 12 per cent in a year's time,' he adds. 'I think it'll get worse.'

house with brick wall and white window

(Image credit: Future PLC/Colin Poole)

Phil Spencer's house price prediction is sobering. Especially, after the latest figures from Rightmove and Zoopla demonstrated an increased homebuyer interest.

The increase in demand had many optimistic of a rapid bounce back to the strength of the pre-lockdown market. However, even Zoopla has approached the rebound in demand with caution.


living room with white wall and frames on the wall

(Image credit: Future PLC/Heather Young)

'COVID crisis and 50 days lockdown has created an unexpected one-off boost to housing demand,' explains Richard Donnell, director of research and insight of Zoopla. 'Many households are likely to have re-evaluated what they want from their home. This could well explain the scale of the demand returning to the market.'

'However, we expect the latest rebound in demand to moderate in the coming weeks as buyers and sellers start to exert great caution,' he adds.

Despite the challenges facing the property market at the moment, if you are determined to move at this time Phil Spencer has some final words of wisdom:

Related: Phil Spencer has some reassuring property advice for dealing with Coronavirus that you need to hear

'If you're going to move, then crack on - or sit it out!'

Rebecca Knight
Deputy Editor, Digital

Rebecca Knight has been the Deputy Editor on the Ideal Home Website since 2022. She graduated with a Masters degree in magazine journalism from City, University of London in 2018, before starting her journalism career as a staff writer on women's weekly magazines. She fell into the world of homes and interiors after joining the Ideal Home website team in 2019 as a Digital Writer. In 2020 she moved into position of Homes News Editor working across Homes & Gardens, LivingEtc, Real Homes, Gardeningetc and Ideal Home covering everything from the latest viral cleaning hack to the next big interior trend.