At last: House market enjoys a Boris bounce
Tory election victory unlocks demand
A POST-election ‘Boris bounce’ has spurred a recovery in house sales, surveyors say.
The number of transactions across the UK increased for the first time in seven months following the decisive Tory win, according to the Royal Institution of Chartered Surveyors (Rics).
The report, published today, comes after official figures showed that prices also started to recover before the poll, equalling the record high in November.
Even prices in London bounced back after falling repeatedly for 17 months, the Office for National Statistics (ONS) said.
Yesterday chief Rics economist Simon Rubinsohn said: ‘The signals from our latest survey provide further evidence that the housing market is seeing some benefit from the greater clarity provided by the decisive election outcome.
‘Whether the improvement in sentiment can be sustained remains to be seen, given that there is so much work to be done in determining the nature of the eventual Brexit deal.’
Inquiries from potential buyers were on the rise as well, particularly in the South East, Rics said. Overall, two thirds of surveyors said they expected sales to rise – up from just one third a month ago.
Sam Mitchell, boss of online estate agent House-simple, said: ‘Already in 2020 we have seen a huge spike in activity after the decisive General Election, bringing with it a positive impact on the housing market. As confidence returns to the market and the Boris bounce boosts the sector, we should see this positivity feed through into further increasing transactions and price increases. Greater political certainty is already unlocking demand from buyers.’ Meanwhile, the ONS said average UK house prices increased to £235,000 in November, up by 2.2 per cent or just over £5,000 compared with a year before.
The biggest increase compared to a year before was in Wales, where the average price rose by 7.8 per cent to £173,000. Prices rose by 4 per cent to £140,000 in Northern Ireland, 3.5 per cent to £155,000 in Scotland and 1.7 per cent to £251,000 in England.
The ONS said the huge jump in Wales was driven by a shift towards higher- value homes changing hands in areas, such as Cardiff and nearby Newport.
Within England, prices rose in every region except the East where they fell by 0.7 per cent.
They grew fastest in the West Midlands – at 4 per cent – while in London they rose by about 0.2 per cent.
The UK’s inflation rate fell to its lowest for more than three years in December, increasing speculation that interest rates could be cut. The annual rate dropped to 1.3 per cent last month, down from 1.5 per cent in November.
‘A huge spike in activity’