Monday, 20 January 2020

Two per cent rise in asking prices forecast

Two per cent rise in asking prices forecast

THE average asking price for UK homes is set to increase by two per cent over the coming year in the wake of last week’s general election result.

Online property search company Rightmove predicts that the clear government majority is likely to mean increased housing market activity this spring, and that northern regions will perform more strongly than those in London and the South.

The firm’s director Miles Shipside said: “The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand.

“Rightmove measures the prices of 95 per cent of property coming to market, and we predict that buyers and sellers will on average see a two per cent rise in those prices by the end of 2020.

“And while this is more than twice the current annual rate of 0.8 per cent, it’s still a relatively marginal increase as it’s a price-sensitive market.

“There will be regional variations. London is finally showing tentative signs of bottoming out, and we expect a more modest price rise of one per cent in all of the southern regions where buyer affordability remains most stretched.

“In contrast, the largest increases will be in the more northerly regions, repeating the pattern of 2019 with increases in the range of two to four per cent.”

“However, there is still a shortage of supply in the housing market and first-time buyers are still struggling to get on the property ladder.”

Mr Shipside added: “First-time buyers are the drivers of the market. Too many are struggling to save the necessary deposits, and not all of them want to buy a new-build home through Help to Buy.

“More ways of getting more people on to the ladder would help to limit rising rents, increase liquidity and transaction numbers in the housing market and make the dreams of their own roofs above their heads a reality for many more of the younger generation.”