It's not all doom and gloom. With all the political uncertainty going on recently, at least one area seems to be on the up: the property market.
ONWARDS AND UPWARDS
The lack of clarity on Brexit has made many buyers and sellers cautious, making the market particularly sluggish. All this could be set to change as Britain moves into a new phase of certainty.
Many in the industry are predicting a positive effect on the property market with a post-election "super-bounce". Which translates as a returning sense of confidence from buyers and sellers which some agents believe will "unlock pent-up demand from people to sell."
Agents are predicting many homes to be put on the market in the New Year.
If the market is fluid, house prices are likely to rise.
RIGHTMOVE PREDICTS HOUSE PRICE RISES
Rightmove have just released their house price index with the following points:
- Rightmove predicts 2% rise in price of property coming to market in 2020 as majority government gives home-movers a window of certainty for an active spring moving season.
- Demand for property remains resilient as we move into 2020, though lack of supply is a concern.
- Fundamentals remain sound with low interest rates, lenders competing to lend, high employment, and wage growth helping buyer affordability.
Miles Shipside, Rightmove director and housing market analyst comments:
“The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand. Given the Brexit track record to date, further political twists and turns should not be ruled out, though with a large majority there is a higher possibility of an end to the series of Brexit deadlines, and the prospect of an orderly resolution.
"Rightmove measures the prices of 95% of property coming to market, and we predict that buyers and sellers will on average see a 2% rise in those prices by the end of 2020. While this is over twice the current annual rate of 0.8%, it’s still a relatively marginal increase as it’s a price-sensitive market.
"There will be regional variations. London is finally showing tentative signs of bottoming out, and we expect a more modest price rise of +1% in all of the southern regions where buyer affordability remains most stretched. In contrast, the largest increases will be in the more northerly regions, repeating the pattern of 2019 with increases in the range of 2% to 4%.”
WHAT WILL THE NEW YEAR BRING
Some experts are warning that although the early part of 2020 will see a bounce in demand, some economic uncertainty is still on the cards until a trade deal with the EU is agreed.
STAMP ON STAMP DUTY
What more in the industry are calling for is for the Tories stick to their promise on a Stamp Duty cut which will certainly reinvigorate the market. The Tory proposals for a further 3 per cent stamp duty surcharge on buyers who are not resident in the UK will lead to a rush on overseas demand before this comes into play. Many agents are already seeing this happen.
WHAT CAN WE COUNT ON IN THE YEAR 2020
Up or down, deal or no deal, at least there is some more certainty back in the country and that can only be a good thing for the housing market.
Onwards and upwards.
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