2019 ‘may be the year for ‘improving not moving’

Experts predict that home-owners will stay put as various obstacles arise

Next year could be the year of improving rather than moving for the housing market as various obstacles prompt home owners to stay put, experts predict.

With the fog of Brexit uncertainty still hanging over the market – and other issues such as affordability and a lack of choice for buyers – some experts believe house price growth will take a pause in 2019.

A north-south divide may also continue to open up, with house price growth in previously “booming” parts of the south proving weaker than growth further north where affordability is less stretched, according to forecasts.

Fionnuala Earley, head of market insight at SellMyHome.co.uk, expects to see a 1% dip in house prices across the UK in 2019 followed by a 1% increase in 2020 – with stronger growth of 2.5% in 2021 and 3.5% in 2022.

She said: “Looking ahead, we should expect only very modest house price growth on a national scale, but with weaker conditions in London, the east and the south.

“Housing market activity will remain broadly flat compared with recent years as uncertainty stymies decision-making and transactions costs continue to hinder movement.

“This combination has tilted the balance in favour of improving rather than moving as the choice of property to buy is limited.”

The Royal Institution of Chartered Surveyors (Rics) expects house prices to come to a standstill by mid-2019.

Rics economist Tarrant Parsons said: “Demand has tailed off over recent months, with Brexit uncertainty causing greater hesitancy as the withdrawal deadline draws closer.

“That said, the current political environment is far from the only obstacle hindering activity with a shortage of stock continuing to present buyers with limited choice, while stretched affordability is pricing many people out.”

Meanwhile, property website Rightmove predicts house-sellers’ asking prices will be unchanged at 0% across 2019.

Underlying the flat growth across the UK generally, Rightmove expects to see asking prices falling by around 2% around London’s commuter belt and decreasing by around 1% in Greater London itself.

Heading further north, where affordability is less stretched, asking prices could increase by around 2% to 4%, Rightmove predicts.

PA. Reports suggest a 1% dip in house prices across the UK next year, with uncertainties affecting the market.