Now that we are in 2020, and there will hopefully be a period of political stability in the UK, it is time to look forward. While political uncertainty is just one of the factors which influence behaviour in the property market, it has been a significant factor in recent times. While the Brexit deadline and the Budget are still to come, there is optimism that things will be more settled, and this will aid the UK housing market.
There is certainly cause for optimism in the latest RICS survey. The details indicate an increase in the number of sales and buyer enquiries for December 2019. This represents an increase for the first time in several months. RICS believes house prices across the country are likely to rise in 2020, citing a less volatile economic and political climate.
The UK is still divided on property matters
As always, though, there are signs that the nation is divided. Property sales in Scotland and Northern Ireland fell, but in London and the South East of England, there was a significant increase in sales. There was also increased interest from buyers in Wales and the North East of England, which drives the sense of optimism for the property market.
The survey reveals 66% of RICS members expect house sales growth to be positive in the next 12 months. You can compare this with last years’ figures, where only 35% of members expected positive house sales growth.
Simon Rubinsohn is the Chief Economist at RICS, and he said; “The signals from the latest RICS survey provides further evidence that the housing market is seeing some benefit from the greater clarity provided by the decisive election outcome. Whether the improvement in sentiment can be sustained remains to be seen given that there is so much work to be done over the course of this year in determining the nature of the eventual Brexit deal.”
More homes are needed to boost the market
While there is cause for optimism, it is only fair that people consider the impact the shortage of houses for sale in the market may have. Alongside political uncertainty, a lack of property for sale has been a factor in the market.
This is also addressed by Simon Rubinsohn, who said; “However, the sales expectations indicators clearly point to the prospect of more upbeat trend in transactions emerging with potential purchasers being more comfortable in following through on initial enquiries. The ongoing lack of stock on the market remains a potential drag on a meaningful uplift in activity although the very modest increase in new instructions in December is an early hopeful sign.”
While the London property market should be viewed on its own merits, there is no denying that a shift in expectations in the capital can be considered to be a decisive element for the market as a whole. There is a need to see if the Government follows through on its promises made on housing, but if this happens, there will be further cause for optimism in the 2020 housing market.
If you plan on selling your Camberwell home in 2020, please contact Hunters Camberwell. We can arrange a property valuation for you, and we will do everything we can to ensure you receive the best standard of support and guidance throughout the sales process.