News ID: 263016
Published: 0422 GMT December 16, 2019

House prices predicted to rise by 2% in UK

House prices predicted to rise by 2% in UK
Estate agent signs in London, where house price rises are expected to be below the two percent predicted national average. (YUI MOK/PA)

The average price of a home will rise by two percent over the next year, with northern regions performing more strongly than those further south, according to predictions from the UK’s biggest property website.

Rightmove said it expects to see asking prices rise by two percent in 2020 — and that the election result could pave the way for increased housing market activity this coming spring, the Guardian reported.

The rebound in the market follows a moribund 2019, in which the number of sales agreed fell three percent on last year and the number of properties coming to market fell by eight percent, said Rightmove.

The website’s data for the latest month — to mid-December 2019 — revealed that prices were still declining as the election took place. Rightmove said the average price fell by 0.9 percent to £300,025 in December, leaving the market just 0.8 percent ahead of this time last year.

But a re-acceleration next year, even to just two percent growth, will mean buyers having to pay £6,000 more for the average home.

Rightmove director Miles Shipside welcomed the certainty produced by the election landslide. “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.”

He added: “There will be regional variations. London is finally showing tentative signs of bottoming out, and we expect a more modest price rise of one percent 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 two percent to four percent.”

On Friday one super-rich European family bought a house in central London for £65 million, saying their decision was a direct result of Boris Johnson’s Conservative party election victory.

The family instructed the luxury estate agent Beauchamp Estates to buy the property in an undisclosed ‘prime central London’ location, as investors and the very wealthy celebrated the 80-seat majority.

Chestertons, an estate agent with offices in 30 upmarket locations around the capital, said a bounceback in London prices could be swift.

Guy Gittins, the managing director of Chestertons, said: “We expect that the considerable pent-up buyer demand which has been waiting for Brexit clarity will now be released. Sellers will in turn be encouraged by the increase in demand and are likely to start putting their properties on the market in greater numbers, and the increase in sales could see prices bounce back quite quickly.

“We have already seen how quickly confidence can rebound, with the pound surging to its highest level since June last year and the FTSE 250 hitting record highs, and buyers should consider acting sooner rather than later, while prices are still at attractive levels compared to the last market peak.”

 

 

   
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