Rightmove predicts that the price of property coming to market in Britain will rise by 2% in 2020. Home-mover confidence and activity have been dogged by political uncertainty since the 2016 referendum. With a clear majority in the election, there is now an opportunity to release some of the pent-up demand in the spring, and for some modest upwards price movement. Sellers’ pricing power will be enhanced by a lack of choice for potential buyers, with the proportion of estate agent stock that is available for purchase at its lowest for over two years.
- Rightmove predicts 2% rise in price of property coming to market in 2020 as majority government gives home-movers a window of certainty for an active spring moving season.
- Demand for property remains resilient as we move into 2020, though lack of supply is a concern:
- The monthly decrease (-0.9%) is the smallest at this time of year since December 2006, showing that sellers and their agents think that demand is strong.
- Demand outstripping supply: number of sales agreed so far in 2019 down by just 3% on 2018, while number of properties coming to market down by 8%.
- Fundamentals remain sound with low interest rates, lenders competing to lend, high employment, and wage growth helping buyer affordability.
To see the full house price index report, please visit: https://www.rightmove.co.uk/news/house-price-index/