In January, it is perfectly acceptable for people to look to the next 12 months. Having a better understanding of how the year will pan out allows people to make decisions with confidence. You can see why this is important for people looking to make changes in the property market.
There is a sense of optimism surrounding the housing market in 2020. There should now be a period of political stability in the United Kingdom, which will hopefully be positive for the property market. It is not to say political uncertainty has been the cause of all the housing market problems in recent times, but it has played a part.
While we will likely need to see the outcome of Brexit and the March Budget before we can determine what the market holds in 2020, those hoping for a “Boris Bounce” may still see significant changes and growth in the housing market in the next 12 months.
Buyers are tipped to return to the market
The Intermediary Mortgage Lenders Association (IMLA), believe gross mortgage lending will return to growth in the next two years. The organisation believes there will be a significant increase in house purchases as buyers return to the market, and this will bring about this change.
The New ‘Normal’ Report makes several predictions regarding the mortgage market between now and 2022. In 2019, gross mortgage lending dropped by between 1 and 2%, but the IMLA expects an upturn in proceedings. The organisation predicts gross mortgage lending will increase by 1.4% to a level of £268 billion in 2020, and then rise to £275 billion in 2020. By comparison, the 2019 figure was estimated to be £264 billion.
The IMLA states earnings growth and the “low-rate environment” will lead to market growth. With political stability a factor for the market going forward, there is enough to suggest that more buyers will act.
Optimism for the property and mortgage market
The Executive Director of IMLA, Kate Davies, said; “The next two years certainly look positive for the mortgage market. In 2019 the sector remained resilient in the face of ongoing political uncertainty. Still, our report shows that a boost in consumer confidence is likely to support modest growth over the next two years. Intermediaries are driving a large part of that growth as borrowers continue to seek out the expertise of advisers to help them find a mortgage.”
If there is an increase in mortgages, it is positive news for buyers, but it is also vital news for vendors. When there is an increase in the number of people looking to buy homes, vendors can feel more confident about entering the market. In turn, this will hopefully lead to more buyers looking for a home, which should then create a cycle which sees the housing market improve on recent performances.
If you are looking to sell your home in Bridgend, we are more than happy to help you. We can arrange a property valuation, and we are more than happy to take you through the sales process from start to finish. Contact Hunters Bridgend today, and we will ensure you receive the support you need when selling your Bridgend home.