Under The Hammer
Property predictions – what could happen to the housing market in 2020?
17 January 2020 1924 Views
Now that 2020 is underway, activity in the property market is likely to start picking up due to the traditional seasonal upturn in January and February.
The end of the festive season, combined with the 'new year, new me' mantra, means the demand and supply of homes often booms at this time of year as sellers get serious about marketing their homes and buyers commit to searching for their perfect property.
This year, more than usual, there's expected to be a welcome boost to the property market following December's general election and the prospect of Brexit finally reaching a conclusion.
At this time of the year, housing market analysts and experts also typically take it in turns to predict what could happen in the property world over the next 12 months when it comes to house prices, transactions, supply and demand.
With this in mind, here's a roundup of some of this year's predictions from key industry players...
- Rightmove: The UK's largest portal says that property prices will increase by between 2% and 4% throughout the duration of the year. It predicts that there will be regional variations, with signs of recovery in London and strong performances in northern locations.
Rightmove adds that price rises in the south are expected to be more modest at around 1% annually due to stretched affordability for property purchasers.
- Knight Frank: The global property firm predicts relatively conservative national price rises of up to 2% during 2020.
It says that prices will not rise at all in the capital this year, while prices across the rest of the UK could increase by up to 4% by 2024.
- The Royal Institute of Chartered Surveyors (RICS): According to the trade body, surveyors expect the number of transactions to remain steady in 2020. It says that despite an uplift in market sentiment, an ongoing property supply shortage will limit any real boost to sales this year.
RICS is predicting that house prices will rise by 2% this year and that average rents increase by around 2.5%.
- reallymoving.com: Contrary to most predictions, the home moving website suggests house prices fell in December, will remain steady in January before falling again in February.
reallymoving says it expects the housing market to follow its usual seasonal pattern, despite the renewed market confidence following the election of a majority government.
- Zoopla: According to the property portal, house prices in UK cities will rise by up to 4% in 2020, with Northern cities performing strongest when it comes to growth.
Zoopla's insight director, Richard Donnell, says London sales volumes will see limited growth and that affordability constraints will cap annual growth in the capital to around 2%.
- Halifax: The high street lender is forecasting property price lifts of between 1% and 3% over the next 12 months.
It adds that house prices in the North of England will start to increase thanks to the new government's pledges to focus on housing policy and infrastructure investment, but this is likely to start taking shape from 2021 onwards.
- Savills: The global property consultancy predicts UK house prices to rise by 1% during 2020 and says that prices in the North West of England will rise six times faster than those in the capital by 2024.
The firm adds that it expects the Bank of England's base interest rate - which affects mortgages and savings - to rise to 2% from its current position of 0.75% over the next four years.
So, there we have it. The property world is predictably unpredictable but the above should give you a good idea on the current direction of the market. And with a more stable political structure now in place, there is certainly a renewed feel-good factor among consumers who were previously delaying key decisions.
If you're thinking about buying or selling a property at auction this year, get in touch with our expert team at Under the Hammer and we'll be able to guide you through the process.
Our auctions include listings from some of the country’s top estate agencies. To get the ball rolling, you can request an estimate of your property's value here.