Asking Prices Surge After General Election

21st January 2020 posted in Sellers Buyers

If anyone is looking for evidence of optimism in the property market after the General Election, property prices are an excellent example. No matter your opinions on the General Election or the Government who now holds a sizable majority, a perceived period of political stability will encourage more people to make a move in the market.

The impact has already been seen if the information provided by Rightmove is anything to go by. Asking prices of properties coming onto the UK housing market have increased by 2.3% since the General Election. This is the most significant monthly increase ever recorded between mid-December and mid-January.

Rightmove study the prices of 65,000 properties said the average asking price increased by £6,785; to a level of £306,810. This was a rise of 2.3% on the previous month, and 2.7% on the annual figures.

There has been an increase in new buyer enquiries

The online property portal also said new buyer enquiries with an estate agent increased by 15% compared to the figures from a year ago. This took the number of new buyers’ enquiries to 1.3 million. For sales, there was a 7.4% increase on the annual figures.

Rightmove believe these figures suggest there is a period of stability for buyers and vendors, which is attributable to the General Election. Miles Shipside is the Director and Housing Market analyst at Rightmove, and he said; “The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home movers to hesitate. Whilst a substantial rise is the norm in January, buoyed by the start of a new year, this is the biggest new year price surge that we have ever recorded.”

Further changes may occur in UK property market

The company was keen to point out that there might be “more twists and turns” in the market. There is still the full impact of Brexit and the Budget to endure; but for now, there is an opportunity for vendors to place their home on the market. Miles Shipside continued by saying; “There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market. The early birds are on it, with over 1.3 million buyer enquiries to agents since the election.”

The average price for property in Greater London, according to Rightmove, is £612,465. This represents a monthly change of 2.1% and an annual change of 3.1%. The company lists the average time to sell property in Greater London as 78 days. This is the second-longest time in the country, with only the North East taking longer, with 80 days.

At Hunters Forest Hill, we know selling your home is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.