House prices predicted to grow by 2% in wake of decisive general election result

16 December 2019

Homeowners can expect 2% house price growth in 2020, thanks to a clear-cut majority for the Conservative government

Image

The certainty of a majority government will give homeowners a 'window of opportunity' for a strong spring 2020 season according to property website Rightmove.

The firm says that while demand is currently still strong, the supply of houses on the market is a concern. This is good news for the potential growth in value of housing.

The number of sales of houses agreed in 2019 is down 3%, while the number of properties becoming available is down 8%.

Rightmove says that home-mover confidence has been “dogged by political uncertainty since the 2016 referendum”. Now with a clear government majority and policy platform, this clears the way for people to get on with the house moving business.

Miles Shipside, director and housing market analyst at Rightmove  comments: “The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand.

“Given the Brexit track record to date, further political twists and turns should not be ruled out, though with a large majority there is a higher possibility of an end to the series of Brexit deadlines, and the prospect of an orderly resolution.

“Rightmove measures the prices of 95% of property coming to market, and we predict that buyers and sellers will, on average, see a 2% rise in those prices by the end of 2020. While this is over twice the current annual rate of 0.8%, it is still a relatively marginal increase as it’s a price-sensitive market. There will be regional variations.”

Add new comment