Mild rises likely coming from greater Brexit certainty
Rightmove have predicted a modest 2% rise over the course of 2020 for the UK, with larger gains expected in the North.
This is mainly due to the Government’s large majority and Brexit now confirmed for 31st January which should give both buyers and sellers more confidence to move in the property market.
Miles Shipside, Righmove’s director has said that the new Government will have “an opportunity for a more active spring moving season, with some release of several years of pent-up demand”. Supply is still a problem, with the number of properties coming onto the market in 2019 being down 8%.
London may have bottomed out but with affordability stretched a lower 1% is predicted across the board. Prime Central London is still very dependent on foreign investment and taxes such as Stamp Duty and ATED remain high.
There is still speculation that Stamp Duty may be slashed in the February budget but given the cost to the Government, this is more of a hope than a certainty.
Times are still tough out there for first-time buyers who according to Shipside are “the drivers of the market”. Other factors such as rent rises, liquidity and number of genuinely affordable properties are all relevant.
According to Clearscore “if there is any change in the Bank of England base rate, it’s likely to go down.” This will mean that the cost of borrowing would decrease allowing for cheaper mortgages, providing that the lenders pass on the savings.