News

Pick up in the housing market means £6,000 more for the average home

Market analysts predict a reversal of the north exceeding the south of the UK with the average house price in the UK rising by 2% in the next year.

Predictions from Rightmove have predicted asking prices rise by 2% in 2020, stating that the comprehensive election result could “pave the way” for an increase in housing market activity this coming spring.

With the number of sales agreed falling 3% compared with 2018 and the number of properties coming to market dropping by 8%, it was a poor return for the property market overall last year in the UK.

Rightmove’s data covering the tail-end of 2019 suggested that prices were still declining pre-election, with the average price dropping just short of 1% to £300,025 in early December. With 0.8% growth from 2018 to 2019leaving the market just 0.8%, the predicted pick up in 2020 – even to just 2% growth – will mean buyers can expect to pay £6,000 more for the average home.

The director of Rightmove, Miles Shipside welcomed the certainty produced by the landslide election: “The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand.”

He added: “There will be regional variations. London is finally showing tentative signs of bottoming out, and we expect a more modest price rise of 1% in all of the southern regions where buyer affordability remains most stretched.

“In contrast, the largest increases will be in the more northerly regions, repeating the pattern of 2019 with increases in the range of 2% to 4%.”

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