Many economists, industry leaders and the humble team here at Your Conveyancing Solution are predicting a modest national rate of growth across this annum of between 1% – 2%. This will vary across different regions and the majority of this annual gain could be in the first quarter or two before falling back slightly post-summer. London and the southern home counties are expected to be relatively flat so this could mean a slightly more generous bounce in other locations with property owners in the Midlands, parts of Yorkshire and the North West expected to be the happiest recipients.
Brexit’s Impact on the Property Market
The modest increases predicted will predominantly be restrained due to the B-word which continues (although a little less so now than possibly towards the end of this year) to hang over politics and the property world alike. Until trade deals are agreed and we cleanly exit the transition phase, confidence may not return on a vast scale. Could this then, prior to steeper future increases in prices, be the time to purchase or invest in a property?
Year on Year Growth in the Property Market
A good indicator could be year on year growth and last year as an average across England, that was circa 1%. With the political stalemate and uncertainty we experienced, that remains a fairly strong year and could point to another steady one ahead. Total transactions have remained static at the 80,000-90,000 level per month, so no great spikes or declines suggest the range many are suggesting could prove relatively accurate.
A no-deal exit which involves the UK leaving the European Union without a trade agreement could affect prices negatively by circa 10% over the following year while an orderly transition may see several (3 to 4) years of increases in the 3-4% region across most areas.
Factors that can Affect the Property Market in 2020
Other factors to consider are the recent spread of coronavirus which may result in a temporary weakening of the economy but this could lead to a cut in the Bank of England base rate at some point during this year back to 0.5%. For those few with tracker mortgages you may realise a few extra pounds in your pocket, while those stepping onto the property ladder may benefit from slightly lower fixed and standard variable rates than they may have otherwise expected. Even the budget, which is fast approaching, may contain news which could directly affect the market, both positively or negatively via stamp duty or another adjustment with the help to buy scheme which is due to alter in April of 2021 and potentially rules governing buy to let purchases.
Many leading businesses within the property industry also expect numerous areas to continue to suffer from a lack of supply which again, outstripped by demand, may assist with keeping overall prices growing throughout 2020.
Ultimately, many will be guided by their own circumstances at the time. Obtaining sound financial advice and conveyancing knowhow will be critical and the team here at Your Conveyancing Solution are on hand to help.
We hope that you find the information presented in this blog useful. For more information on the property market and any of our services then feel free to contact us via our online form or call us on 01536 238660
Disclaimer: The article above is an opinion piece based on what may happen in the property market during the current calendar year. Any price related comments are predictions and should not be relied upon.