Now that the uncertainty created by the general election has passed, and the certainty that Britain will be leaving the EU in 2020 has come into focus, the housing market can expect a surge in property sales, the Royal Institution of Chartered Surveyors has said.
The report has outlined a release of pent-up demand in the property market as prospective sellers rush to get their homes on the market. More than 75% of survey respondents claimed that the uncertainty over Brexit was holding back the market as buyers and sellers waited for more clarity.
Whether the UK leaves the EU without a deal, or Article 50 is extended, the basic advice for buyers and homeowners remains broadly the same as usual, moneysupermarket.com advises. If you’re planning to buy, you shouldn’t worry too much about house prices and should mainly consider whether the property is affordable to you and whether you’d be happy living in it for the medium to long-term.
A spring in the step of the housing market
The HomeOwners Alliance agree with the report’s findings claiming that existing and aspiring homeowners will now be looking ahead with more confidence. More political stability is likely to bring a release in pent-up buyer demand and, for some commentators, an early spring bounce to the housing market. (https://hoa.org.uk/2019/12/general-election-housing/?fbclid=IwAR2Eu0rdJx9Jy4ye_FJlg72xYBBJ_6rxqlC6XfUa4_IMtghPvK0Jc6k2gTo#)
“Expect a sharp uplift in transaction levels starting early in 2020, as buyers and sellers who have played it safe put their plans into motion,“ said Andrew Montlake, managing director of mortgage broker Coreco.* (Source: https://inews.co.uk/inews-lifestyle/money/house-prices-brexit-effect-general-election-2019-result-uk-property-market-1340855)
What does Brexit mean for house prices?
leaving Europe before Spring, when property sales are usually at their highest, is likely to drive house prices up in the short term as stability and confidence returns to the market.
Jonathan Samuels, CEO of Octane Capital, said: “Price growth in 2020 is likely to be a lot more robust than in recent years but what we don’t want is for values to suddenly get ahead of themselves. The property market will enter 2020 with a spring in its step but all eyes will be on how the economy holds up as we exit the EU.”
Some commentators are even claiming that house prices will rise by up to 15% over the next five years.
If we leave next [January] as expected, a report by Savills claims, house prices will increase by 4.5% in 2021 and then 3% a year every year until 2024; while Rightmove expect property prices to rise by 2% in 2020.
“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,” Miles Shipside from Rightmove said.
“With all the new-found confidence over Brexit, it is imperative for prospective sellers to get their property ready for market early in the new year”, says House Fox Managing Director Neil Urch. ” There will be a lot of property on the market come spring. Getting ahead of the hunt has never been more important.”
Disclaimer: All advice on this site is given ‘as is’ House Fox Estate Agents are not responsible for any losses you may make subsequent to following the advice on this website, we advise you to always do your own research in full before you act.