The housing market has enjoyed what some are calling a “Boris bounce” following the result of last month’s general election, with confidence in the market hitting a three-year high, according to a new survey.
Zoopla, in partnership with MonkeySeed, surveyed 6,000 people, and over 650 agents from the sales and lettings landscape across the UK, and found that the housing market is seeing some benefit from the greater clarity provided by the decisive election outcome.
Estate agent confidence levels are up, with more than half - 55% - of those surveyed reporting that they feel either ‘very confident’ or ‘somewhat confident’ in the strength of the market during the next year. This follows a three-year consecutive decline in agent confidence.
From a regional perspective, agents in the north are registering the highest levels of confidence in market performance for 2020 at 57%; meanwhile, agents in the south come in at 53% and demonstrate the highest turnaround in sentiment, up from 46% recorded 12 months prior.
Some 52% of agents expect to see an increase in the supply of stock coming onto the market over the next 12-18 months to start meeting buyer and renter demand.
Additionally, 45% of agents believe that there will be an increase in the number of property transactions that take place across the year ahead, in a further sign of renewed market health.
The economic and political landscape, as well as current stock levels, were cited as immediate market challenges; however, the subsequent election outcome is already starting to reshape market dynamics.
Andy Marshall, chief commercial officer at Zoopla, said: “It comes as little surprise that the so-called ‘Boris Bounce’ has already started to reshape the market in the immediate term – particularly amidst reports of improving consumer confidence following the decisive election outcome.
“Without doubt, appetite to buy and sell property has been pent up since the aftermath of the Brexit vote in 2016, and it would now appear that we have the green shoots of a new cycle in the market.
“While we don’t expect runaway prices – indeed we have forecast a modest 3% growth for 2020 - we are definitely heading in the right direction and agents are rightly benefitting from what we hope will become a new dawn.”