Rightmove predicts 2% rise in UK property prices in 2020

UK property prices should rise by 2% in 2020 now the Conservative Party has secured a majority, according to a forecast by Rightmove.

It added that sellers’ pricing power will be enhanced by a lack of choice for potential buyers, with the proportion of estate agent stock that is available for purchase at its lowest for over two years.

Miles Shipside, Rightmove director and housing market analyst, said:

“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.”

Shipside added that there will be regional variations.

London is apparently showing tentative signs of bottoming out, while a more modest of increase of 1% is expected in Southern regions.

Sales numbers agreed so far in 2019 are down by 3% on 2018, while number of properties coming to market have fallen by 8%.

Josef Wasinski, co-founder of Wayhome, said:

“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.”

Kindly shared by Property Wire