Leading property website, Rightmove has predicted a 2% price rise for properties coming to the market during 2020 as the majority government provides home movers with certainty for an active spring market.
Political certainty
According to Miles Shipside, property expert for the property search engine, “With much of the political uncertainty removed, we expect that the number of properties for sale will recover as more new sellers come to market, making up some of this year’s lost ground.
“However, property supply is still limited, with estate agents having the lowest proportion of properties available for sale in two years, and this will fuel modest gains in the national average asking price of property coming to market.
“The fundamentals remain sound with low interest rates, lenders competing to lend, high employment, and average wage growth outstripping house price growth and helping buyer affordability.”
The maths
Rightmove has based their price rise predictions on 95% of properties coming to market. Despite the 2% being more than double the annual rate of 0.8%, it is still a relatively marginal increase due to such a price-sensitive market.
At the end of 2018, Rightmove predicted that there would be an average of no upwards price movement, with 2019 seeing no price change as a result of an uncertain outlook and stretched buyer affordability.
The annual rise in 2019 was only slightly higher than their prediction, at 0.8%, with the end of the year ending on a stronger note than anticipated. The 0.9% fall this December is the smallest it has been for this time of year since 2006. Due to demand outstripping supply, prices are being under-pinned and pushed upwards.
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