Recent figures from the Office of National Statistics showed a rise in prices for every region of the UK. Now that the property market has had its shackles removed, will it reach even greater heights in 2020?
With so many conflicting opinions regarding the direction of the UK property market, the only true way to ascertain if it’s a false dawn or something more concrete is to look at the independent official data and talk to the experts.
Right up to the latter part of 2019, many industry commentators were proclaiming doom and gloom, but we had a different take. We knew that there was a massive bottle-neck building in the market, and only two things were going to happen.
Firstly, the Conservatives would win the election, and the market would be unleashed, or the Labour party would win and given their views on property ownership, it would remain shackled.
The latest ONS data has shown the average UK house price had risen by 2.2% to £235,000 in the year to December 2019. This means the average house price in England currently stands at £252,000. Scotland, Wales and Northern Ireland also showed healthy increases, with the latter benefitting from a 2.5% rise.
It wasn’t just the ONS showing confidence had returned to the market. The UK Land Registry figures for December showed there had been a post-election boost, with prices rising 1.6% in the much-maligned London market.
Some people might say, “Wait and see what happens when the bottleneck has cleared; things will be different”, and they might have a point.
But with much of the post-EU referendum anxieties now gone and increased confidence in many areas making up the economy, it’s our belief that traditional ‘bricks and mortar’ will continue to be the British people’s safe haven and the upward trajectory will continue.
Okay, the numbers aren’t in the same ballpark as what we’ve witnessed in the past, but the market is heading in a positive direction. It’s whether it continues this trajectory that will show if our confidence is misplaced or correct.
As with many of our property features, we turn to the experts for their views. For this article, we asked Ross Counsell, Director of Good Move, for his opinion on what is happening in the UK property market and what we can expect during 2020.
“Since the Brexit vote in 2016, there has been a great deal of uncertainty in the housing market. Last year’s general election, resulting in a majority government that promised to ‘get Brexit done’, went some way towards reassuring buyers and sellers that the industry is stable.
“It seems now the UK has indeed left the European Union, confidence is continuing to return, and more people are willing to sell.
“It’s remarkable that we’re seeing our first increase in all regions in two years, finally ending the north/south split that saw prices in London and the south stagnate while northern regions saw growth.
“Though it has been suggested that London’s figures may have been slightly skewed by a mini-boom in sales of high-value properties, it can’t be denied that demand in the capital and surrounding areas has increased, leading to higher prices.
“While the number of properties for sale has been relatively low in recent years, this renewed confidence in the industry might lead to a surge in houses being listed.
“Some sellers will have delayed putting their homes on the market until it stabilised, and this might be the best time to do so now that we see prices rise across the country.
“Assuming that the roll-out of Brexit goes smoothly and there are no further political shockwaves, it is likely that this rise in prices will continue throughout the year, perhaps even reaching an increase of 2 or 3%.”
“While the number of properties for sale has been relatively low in recent years, this renewed confidence in the industry might lead to a surge in houses being listed. Some sellers will have delayed putting their homes on the market until it stabilised, and this might be the best time to do so now that we see prices rise across the country.
“Assuming that the roll-out of Brexit goes smoothly and there are no further political shockwaves, it is likely that this rise in prices will continue throughout the year, perhaps even reaching an increase of 2 or 3%.”
Read more articles on the UK property market in our dedicated section here.
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