What does 2020 have in store for the UK property market?
Amid a political gridlock and a difficult year for many within property sectors, the outlook for the market in 2020 was looking uncertain. However, following the recent outcome of the General Election, it seems conditions are already slightly more optimistic. As Managing Director, Alex Mackay, noted in our recent post, the sense of conclusion has already been enough to encourage some clients to proceed with instruction.
With this outcome in mind, we’re looking ahead to what 2020 may bring.
Bounce in consumer confidence
Branch Director for our Hove office, Steve Neocleous, commented on the effect of the political environment on consumer confidence: “The lead up to the General Election and the uncertainty surrounding Brexit caused problems in many industries and certainly not just the property industry. We had been saying to many prospective clients over the past few months and weeks that, whatever your politics, we would hope for a post-Election bounce if there was a definitive result.
I think we can all agree that we have had a definitive result and, consequently, we will be hoping that 2020 brings much more positivity in the housing market and that buyers and sellers who had delayed because of the uncertainty will feel more inclined to get on with their move.”
A return to house price growth
Additionally, following the last two years of slow or, in some areas, declining house price growth, some property experts are also predicting that having a stable government in place and increased consumer confidence will also contribute to a return to growth. Rightmove have predicted a modest rise of 2% growth in 2020.
A slow start?
Whilst optimism is returning for some, it’s likely 2020 will get off to a slow start, as the UK is approaching the January Brexit deadline and, at present, the possibility of a no-deal outcome isn’t entirely off the table. Until the position is clear, there will still likely be many buyers and sellers currently holding off on any decisions.
Moreover, as uncertainty has dominated the market for much of 2019, the issue of housing stock remains key, where demand outstrips supply in particular areas. It is hoped that as potential buyers feel more confident in coming to market, those looking to sell will be encouraged by demand and list properties in greater numbers.
Do you need advice around buying or selling property in the new year? Contact our team today and we will be delighted to help.