Due to last year’s election, the politics has made it much clearer for buyers and sellers to make an intelligent decision.
Jonathan Samuels, the chief executive for Lender Octane Capital, commented: “Price growth in 2020 is likely to be a lot more robust than in recent years but what we don’t want is for values to suddenly get ahead of themselves.”
According to the Nationwide Price Index, average house prices increased by 1.4% in 2019. Last year, Brexit turmoil was also faced by homeowners, and the British housing market was 8% down from 2018, as Rightmove notes.
Rightmove’s property specialist analysed the situation by saying: “With much of the political uncertainty removed, we expect that the number of properties for sale will recover as more new sellers come to market, making up some of 2019’s lost ground.”
Meanwhile, on a local level, the housing market should be considered, representing the average increased price in the UK for 2020 which is the result of property expert predictions:
· Miles Shipside, property portal Rightmove: 2% rise
· Richard Donnell, property portal Zoopla: 2% rise in prices
· Andrew Montlake, mortgage broker Coreco: 2% to 3% rise
· Henry Pryor, housing market commentator: 2% fall
· Andrew Burrell, Capital Economics: 1.5% rise
· Simon Rubinsohn, Royal Institution of Chartered Surveyors: 2% rise
· Russell Galley, mortgage lender the Halifax: 1% to 3% rise
Depending on the area in which they are situated, their 2% raise could be good news for home sales, who could sell their products at a greater rate.
The typical price for a UK house in December was £215,282. First time buyers will struggle heavily as affordability will play a big part in their finance problems. Shipside said: “First-time buyers are the drivers of the market. Too many are struggling to save the necessary deposits, and not all of them want to buy a new-build home through Help To Buy. More ways of getting more people onto the ladder would help to limit rising rents, increase liquidity and transaction numbers in the housing market, and make the dreams of their own roofs above their heads a reality for many more of the younger generation.”
Following an investigation made by Real Homes, the 2% raise could be helpful for first-time buyers as the rise is in accordance with the national minimum wage. However, as well as the housing analyst from Rightmove, Real Homes agree that the government must still provide more help for the younger generation in order to take its first phase in the property ladder.
According to the Tory presentation, prime minister Boris Johnson promised to build 300,000 new homes per year by the middle of the 2020s. Mr Johnson also pledges a review over the next five years of the Help to Buy Equity Loan together with a’ simplified’ shareholding.
Jonathan Samuels said: “The property market has entered 2020 on a positive note but all eyes will be on how the economy holds up as we exit the EU”.
The UK plans to leave the EU on 31 January with the decision of Prime Minister Boris Johnson, with the help of Members of Parliament. While the partnership between the United Kingdom and the EU is under negotiation, the housing market could be strengthened in the first few months of 2020. Nonetheless, this may not remain consistent as the government starts drawing up plans, and we could see more uncertainty in the sector throughout the year.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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