Looking forward to the new year and a new decade, it’s time to ask the question, what do the next twelve months hold for the property market?
Is it a good time to buy a property, or indeed to sell up and move on to pastures new?
A report released last month by property experts Right Move brings together a wealth of information to help us, and you, make that decision. Read on for our take on the data (or read the full document here).
Perhaps the most important factor, and one that we are all tired of talking about, is Brexit and all the political instability of the past 3 years which have left the market with a distinct lack of confidence. Without having the certainty provided by a clear direction forward, people interested in buying or selling property have been left out in the cold.
Whichever way you voted in the general election last month, the government now has a strong majority in parliament. Because of that the country, and the property market within it, can get back to business with a sense of clarity and of direction.
Right Move predicts a 2% increase in sales prices, nationally, in 2020, compared with 0.8 % for last year. But that figure is an average which doesn’t quite give a clear picture. If we drill down into it we can see that the situation is not quite the same across the entire country, with the South East and London predicted to increase by around 1%, while areas in the north of the country are likely to see price increases of up to 4%.
Demand for property continues to outstrip supply and you don’t need to be a graduate from the London School of Economics to know that this is likely to cause a price increase. The number of properties actually coming to the market is down by 8%. There simply aren’t enough houses for everyone who wants or needs one, and the situation is made worse by the growing number of people living alone. The government is addressing the lack of housing stock, so perhaps in the next 12 months, we will see a greater balance of supply and demand.
Happily, all the basics are all there, ready and waiting for the final couple of pieces to fall into place to the end the housing crisis and usher in a new housing boom.
We have low-interest rates. Lenders are competing with each other to provide finance. We have low unemployment rates and good levels of wage growth. In fact, nearly all the ingredients are there for a return to form for the property market. We suggest a strong dosage of optimism.
The advice from the experts is not to wait if you’re thinking about making a move.