Kentish Express Ashford & District
Property in spring and beyond
Experts predict what spring means for house prices, rents and first-time buyers. By Vicky Shaw.
Some fresh signs of life have been springing up in the housing market. The average UK house price jumped by just over £4,000 between November and December last year, according to Halifax. And some property websites have reported seeing a boost in activity during December 2019, compared with a year earlier – perhaps indicating more people are considering moving in the near future.
Surveyors expects a 2% average increase, and Rightmove also predicts sellers’ asking prices will increase by 2%. Meanwhile, Halifax expects house price inflation of 1-3%.
Economists have suggested that the December 2019 General Election result could bring more certainty to the market as 2020 gets under way.
Indeed, property website Rightmove says it saw demand across the UK from prospective buyers increased by 28% in the four days after the election, compared with the same four days in 2018. But experts also suggest Brexit-related uncertainties may inject a further dose of caution into the housing market as 2020 progresses. Andrew Montlake, of broker Coreco, says: “The first half of the year may see more activity than the second, as the feel-good factor caused by the General Election result fades and the complexity of the trade negotiations ahead becomes clearer.”
Home buyers who fancy city living could face forking out more for a property this year. Property website Zoopla says it expects city house prices to increase by 3%.
In cities which are currently more affordable, house prices mayincreaseby4%bythe end of 2020, it forecasts. Zoopla says the average UK city house price has already increased by around £90,000 - over the past decade equating to a 4.4% average annual increase.
This is partly due to evidence that some landlords have been scaling down the number of properties they own - meaning there’s less choice for renters.
The Royal Institution of Chartered Surveyors predicts that rents will increase by 2.5% in 2020 as the sector continues to struggle with a lack of supply, compared with house price growth of around 2%.
David Cox, a property expert from letting agents’ body Arla Propertymark, says more than four-fifths (84%) of letting agents think rental prices will increase over the coming year, up from 65% when agents were asked the same question a year earlier, looking ahead to 2019.