House Prices Low Despite Boris Bounce
Where many were concerned with what a Conservative win would mean for the NHS, those in the property investment game were focused hugely on what impact the general election would have on UK property prices.
With prices on a slow downward spiral since the Brexit vote, many property experts were banking on a ‘Boris bounce’, believing house prices to spike as Boris Johnson was elected into power.
But, that doesn’t seem to be the case.
According to Halifax, a growth in UK house prices will very much be subdued, with rates of growth for 2020 expected to be between 1-3%.
But why? Well, the bank says it is first time buyers holding the market back, struggling to save large deposits to buy their first homes.
This will inevitably have a bearing on transaction activity, with the The Royal Institution of Chartered Surveyors (Rics) expecting levels to be flat.
Russell Galley, Halifax’s managing director, said:
“The housing market in 2019 followed a similar path to recent years. Modest price growth was supported by falling mortgage rates and a low volume of houses for sale, factors which can in part be attributed to elevated uncertainty. This helped to underpin a degree of resilience in the market.
“Prospects for 2020 look a bit brighter, with uncertainty in the economy falling back somewhat, transactions volumes anticipated to pick up and further price increases made possible by growth in households’ real incomes. However, the challenges faced by prospective buyers in raising the necessary deposits may continue to constrain demand.”
These figures are reiterated by online giants, Rightmove, who also predict property prices increasing by 2% in 2020.
While not a huge increase, what this does show is things are moving in the right direction for property investors, with now being a great time to start investing in bricks and mortar.
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