How will UK election result affect house prices in 2020?

Rightmove, the UK property website, expects to see an average increase in house prices of 2% in 2020, although northern cities are expected to experience higher rates of growth while London begins to bottom out.

Miles Shipside of Rightmove explained that “London is finally showing tentative signs of bottoming out and we expect a more modest price rise of 1% in all of the southern regions.”  He added that the strong growth in northern regions in 2019 is expected to continue into 2020, “In contrast, the largest increases will be in the more northerly regions, repeating the pattern of 2019 with increases in the range of 2% to 4%.”

The positive outlook for London’s property market appears as a result of both political stability alongside progress on Brexit creating confidence amongst buyers and sellers, Miles Shipside said “There is now more political certainty which creates a window of opportunity for the release of some pent-up demand in the spring, and for some limited upward price momentum.”

Guy Gittins, Managing Director of Chestertons supports this view, saying that “If there’s one thing that slows the property market more than anything, it’s uncertainty and two big uncertainties have been removed, we will have a Conservative government for the next five years and we will be leaving the EU.”  He expects that an increase in demand will encourage sellers to put properties on the market, with an increase in sales leading to price rises.

James Hyman of Cluttons also expects an increase in the number of properties put on the market in 2020 and most within the UK real estate industry are quietly confident about the prospects of the UK property market given the election result. With growth prospects added to attractive yields in certain areas of the UK, the influx of investment in to UK property from overseas is expected to continue.

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