While there is a lot to be said for hearing what industry experts expect to happen in the next 12 months, it is often more practical to listen to the opinions of people involved with the process. Industry observers can sometimes be too caught up in theoretical matters without considering what is actually taking place in the industry.
Therefore, it is always interesting to hear the thoughts of agents in the industry, and a recent study undertaken by NAEA Propertymark fits the bill. The organisation spoke to estate agents about what is likely to happen in 2020, and what changes they expect to see in the housing market.
Many agents expect house prices to fall in 2020
28% of estate agents who responded said they expect property prices to fall in 2020. When the same question was asked heading into 2019, 43% of estate agents said they expected property prices to fall. 56% of agents tipped house prices to stay the same.
The change in outlook from 2019 to 2020 is notable, and it perhaps indicates there is more optimism regarding house prices for the year which lies ahead. There should be more political stability this year, which is an integral factor in the housing market. It is far from the only factor which matters, but once Brexit has been clarified and the March Budget has taken place, there is an opportunity for a platform for market growth in the next 12 months.
On the issue of sales to first-time buyers, more than a quarter of agents expect this to rise, while 58% of agents expect the figure to stay around the same. This suggests less than a quarter of agents expect sales to first-time buyers to fall in 2020.
The March Budget is crucial for the Government and the housing market
The March Budget is likely to have a significant influence on how many first-time buyers can step onto the property ladder this year. The Conservative Party made numerous housing promises in their manifesto, and there is scheduled to be changes which support first-time buyers arrange a mortgage and buy a home. If these promises are maintained, it should boost the market. If these promises are ignored, it may damage the market and the Government’s standing with the population.
The supply of property is also a significant issue and one which the Government say they will improve. 28% of agents believe the supply of houses to the market will increase in 2019, but of course, this means more than 70% believe the supply will decrease or stay the same. 32% of agents believe demand for housing will increase in 2020.
Mark Hayward is the Chief Executive of NAEA Propertymark, and he said; “The changing political landscape throughout 2019 has undoubtedly caused uncertainty in the housing market, which in turn has affected sentiment and decision-making. Once the current political impasse is resolved and it’s clear how and when we’ll be leaving the EU, we hope there will be a degree of certainty which may trigger a flurry of activity.”
If you plan on selling your Bridgend home in 2020, contact us, and we can arrange a property valuation for you. No matter what your property aims in 2020 are, rely on Hunters Bridgend, and we will ensure you are taken care of.