Post Election Britain: Property Prices for 2020
Now that the Conservative party has won the majority what can the property market in Britain expect for 2020 and in particular for London.
Its is being predicted that property prices will increase by 2% in 2020 according to a new report by Rightmove. The report cites that pricing power by sellers will be better as a result of due to a lack of choice for buyers.
Miles Shipside, Rightmove director and housing market analyst :
“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.”
The property market for London appears to be stabilising with the southern regions likely to have an increase of 1%. The number of sales for 2019 decreased by 3% and properties being offered in the market are down 8%.
Josef Wasinski, co-founder of Wayhome :
“Aspiring homeowners will be waiting to see how their route to homeownership might be impacted by the new government."
“A whole host of political issues and challenges face the Prime Minister and high on the agenda should be the homeownership crisis – which is a chronic problem."
“The reality for many is that buying a home is only possible with the help of friends and family."
“Thousands of reluctant renters will continue to be ignored without radical change from the Conservative party and we welcome any efforts to address this long-standing issue.”
For the London property market another prediction is reported by Homes and Property that the springtime could be the best opportunity for buyers and sellers in more than three years as the election gives a better picture of where the market will moving.
The average home price in London is now at £600,000 in the final Rightmove house index for 2019, a decrease of half of a percentage point for the year and sales are beginning to increase.
Rightmoves' Miles Shipside reports that even before the election a 'bottoming out' for the London market had been underway:
“There is now more political certainty which creates a window of opportunity for the release of some pent-up demand in the spring, and for some limited upward price momentum."
“London’s challenging market is not just around Brexit, however, with punitive taxes and large price rises leading to stretched affordability also being major drags over the past few years.”
Guy Gittins, managing director of Chestertons in Homes and Property:
“If there’s one thing that slows the property market more than anything, it’s uncertainty and two big uncertainties have been removed - we will have a Conservative government for the next five years and we will be leaving the EU, with or without a deal.”
Liam Bailey, global head of research of Knight Frank warns:
“Supply is likely to rise as political uncertainty recedes and private and public spending stimulate the UK economy."
“This will put downward pressure on prices. However, some vendors may expect a bounce in prices, which may create a stand-off between buyers and sellers as the market re-prices.”
As for the end of year for 2019 Homes and Property reports:
"As 2019 draws to a close around a third of boroughs will end the year with annual home price increases, led by Tower Hamlets, where asking prices rose by 1.9 per cent according to Rightmove, and Barnet, Merton and Sutton, all up 1.3 per cent."
"The majority of boroughs, however, are ending the year cheaper than they began it. The worst fall was seen in Brent, down 4.2 per cent, while Hammersmith & Fulham and Kensington & Chelsea saw falls of 3.6 per cent and 3.3 per cent respectively."