House Price Forecast: A strong start to 2020
15 January 2020
By Daisy Stephens
Positive annual growth of house prices is expected over the next three months.
Annual growth in average house prices in England and Wales will remain in positive territory throughout the first quarter of the year, reaching 3.7% in February. This trend of positive year on year growth, which began in July 2019 and is on track to continue through to at least March, highlights the underlying stability of the housing market during a politically and economically tumultuous period.
Month on month, however, house prices are on set to fall by 1.7% from January to March, with any anticipated ‘Boris bounce’ in housing market activity failing to materialise in the value of deals agreed prior to Christmas, following the decisive Conservative win in December’s General Election.
Regionally, the majority of the UK is expected to see a fall in house prices over the first quarter of 2020, with only London, the South West and Northern Ireland on track to see a boost in house prices.
Rob Houghton, CEO of reallymoving, comments:
“A forecast of continued positive annual growth confirms that the market is performing consistently more strongly than twelve months ago and consumer confidence in the housing sector is growing. But despite the UK’s imminent departure from the EU later this month there are still many questions about our future relationship which will deter buyers who don’t need to move urgently, curbing the potential for strong price growth during 2020.
“Those who are hoping for a ‘Boris bounce’ in house prices in March as a result of sales agreed straight after the Conservatives’ decisive election victory in December will have to wait a little longer. It’s likely that Christmas put a dampener on any immediate post-election flurry of activity from buyers, but we may see the delayed impact of this activity in January reflected in house price growth later in the spring.”
For more information on the expected changes to house prices, check out the January 2020 House Price Forecast press release