The average asking price for a property in the UK is said to rise by 2% in 2020 thanks to the general election outcome, new research by Rightmove has found.
With a new year, comes new predictions for the property market.
Research conducted by housebeautiful.com has found that the clear Conservative majority winning could mean we see a greater increase in housing market activity next spring.
Rightmove‘s director Miles Shepard says: ‘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.
‘Rightmove measures the prices of 95 per cent of property coming to market, and we predict that buyers and sellers will on average see a 2 per cent rise in those prices by the end of 2020.
‘While this is over twice the current annual rate of 0.8 per cent, it’s still a relatively marginal increase as it’s a price-sensitive market.’
Large deposits can put a lot of people off when it comes to getting on the property ladder for the first time, and while there are many banks doing what they can to encourage people to buy, more can still be done. Ross Counsell, director at Good Move, says: ‘The Lifetime ISA scheme is helping people to afford the initial lump sum, but more needs to be done to support those looking to get on the property ladder.’
While the number of homes currently on the market is lower than in previous years, first-time buyers could struggle to find a suitable property, but renewed industry confidence could lead to a surge in the number of properties being listed. And if house prices do rise, many first-time buyers could find it a challenge to save for a deposit.
‘The positive news is that mortgage rates remain low. They may rise in 2020, but any increase is likely to be modest,’ he continues.