Landlords can perhaps be forgiven for rejoicing at the prospects of an early Christmas present, after all the uncertainty endured pre-election 2019.
House prices are expected to grow twice as fast, and rents will accelerate next year, following the decisive December General Election result, that’s according to a new RICS survey.
The Royal Institution of Chartered Surveyors thinks that house prices will grow by 2% next year, more than doubling the current 0.8 per cent growth rate. Likewise, rents are likely to increase by around 2.5%.
The RICS forecast is backed-up by Rightmove’s own assessment of the market for 2020. The leading property listing website is also predicting an average UK house price increase of 2% next year.
Rightmove expects a bumper demand for the spring selling season. The biggest price increases are expected in the north of England. Here prices may rise between 2 and 4%, whereas in London and the South East rises could be more modest at around 1%. Here, prices may still be under a cloud, awaiting the outcome of the trade negotiations with the EU.
A RICS economist is quoted as saying:
“Challenges around affordability and low stock levels will continue to drag on the market, and Brexit uncertainty could resurface as the next deadline draws closer. As such, we expect house prices to rise by just 2 per cent next year, with the outlook for overall sales volumes broadly flat”
RICS says that the continuing uncertainty over the final trade agreement with the EU would still have a slowing effect on sales numbers, with overall sales expected to flatline for the whole of next year.
Sales figures actually fell between September and December, according to official figures, and there was a shortage of rental properties coming on the market. Landlord instructions are down according to RICS members surveys, for the 14th successive quarter. As a result, average rents are expected to rise by an average of 2.5%, and in London this figure could be 3%.