Property predictions for 2020 are in with a key focus on house prices, first-time buyers and Brexit.
Combining data from last year, the property experts at Good Move have predicted what we are likely to see take place this year based on a number of factors. Whether you’re planning on buying your first home or looking into moving house, take a look at how the property market is shaping up for 2020.
1. House prices
Research found that house prices in 2019 grew ‘incredibly slowly’ due to political and economic uncertainty in the UK, leading to rises of just 1% in England. While there were some increases in areas across the country, as a whole, the property market was looking bleak.
For 2020, we could be expected to see more significant growth in property prices, albeit not a large one. The February Budget is also expected to affect the market, however it’s largely expected that house prices will increase.
Elsewhere, they also found that the cost of renting could increase by an even greater rate, as the number of letting properties is currently low (which could prompt a rise in prices).
2. First-time buyers
Large deposits can put a lot of people off when it comes to getting on the property ladder for the first time, and while there are many banks doing what they can to encourage people to buy, more can still be done. Ross Counsell, director at Good Move, says: ‘The Lifetime ISA scheme is helping people to afford the initial lump sum, but more needs to be done to support those looking to get on the property ladder.’
While the number of homes currently on the market is lower than in previous years, first-time buyers could struggle to find a suitable property, but renewed industry confidence could lead to a surge in the number of properties being listed. And if house prices do rise, many first-time buyers could find it a challenge to save for a deposit.
‘The positive news is that mortgage rates remain low. They may rise in 2020, but any increase is likely to be modest,’ he continues.
With the UK set to leave the European Union on 31st January, this is of course going to bring some levels of uncertainty surrounding the housing market. While none of us are certain what is to happen, the outcome of a ‘no-deal’ Brexit could mean we see house prices fall.
Recent research conducted by Good Move found that three quarters of Brits over-estimate how badly Brexit has affected their local property prices, showing just how difficult it is to forecast.
Ross says: ‘While the economy is still languishing, the weak pound could actually make the UK property market more appealing to foreign investors, as their money will go further.
‘This, however, depends on current property owners being prepared to sell. Most will likely jump on the increase in market confidence and list their homes straight away, but others may hold on to see just how far house prices rise before making a decision.’