< Back to blog

House prices set to rise by up to 4% in 2020 Posted On 17 December 2019

The results of the election have prompted Rightmove to predict that house prices will rise by up to 4% in 2020.

The prediction is welcome news for the property market and those looking to sell next year, especially after the market had been hit with political uncertainty since the 2016 referendum.

With such a clear majority gained in the election, Rightmove says that there will now be more opportunities to release some of the pent-up demand in the spring.

“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,” explains Miles Shipside, Rightmove director and housing market analyst.

“Rightmove measures the prices of 95% of property coming to market, and we predict that buyers and sellers will on average see a 2% rise in those prices by the end of 2020.

“While this is over twice the current annual rate of 0.8%, it’s still a relatively marginal increase as it’s a price-sensitive market.

“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%.”

Rightmove says that 2019’s annual rise in price is slightly above their forecasted figure of 0% – ending the year at 0.8%, which they say is due to demand outstripping supply.

“With much of the political uncertainty removed, we expect that the number of properties for sale will recover as more new sellers come to market, making up some of this year’s lost ground,” says Shipside. “However, property supply is still limited, with estate agents having the lowest proportion of properties available for sale in two years, and this will fuel modest gains in the national average asking price of property coming to market.

“The fundamentals remain sound with low-interest rates, lenders competing to lend, high employment, and average wage growth outstripping house price growth and helping buyer affordability. The statistics for 2019 encouragingly show that the ‘have-to’ and ‘life-stage’ markets have been carrying on, and we hope that the more certain outlook would encourage many would-be discretionary movers to finally get off the fence.”

< Back to blog

Connect with us

Recent Posts

New Government Restrictions Announced

Six months after announcing the original Lockdown, Boris Johnson announced new restrictions to curb a second lockdown…   Last night, Prime Minister, Boris Johnson, announced new restrictions which will last a further six-months and has warned the public to follow them to avoid a second national lockdown.   The new restrictions include a 10pm enforced …

Read more...

Get your property market-ready and looking sharp this Autumn.

With the Stamp Duty Holiday due to end in March, and the time it’s taking for a purchase to go through, get your property market ready today!   When it comes to marketing your property, the first thing buyers look at are the photos. Good photos of your property can have a huge impact on …

Read more...

Rich pickings

It’s time to hit the hedgerows and roadsides for nature’s free feast   We are heading into the season of mellow fruitfulness. It may not seem it in this crazy year, but in what seems like a bat of an eye, we are already into September, a month where we traditionally hang on to summer …

Read more...

Inspirational Books of the 21st Century

  Books help to heal the soul, and at this time, more people than ever are turning to books for comfort…   Just twenty years in, the 21st Century has already gifted us with so many inspirational pieces of literary work, worthy of comment. So we’ve picked five books, of different styles and genres, which …

Read more...

Heads: Wheels of fortune

  The Government’s easing of Stamp Duty has given home-buyers more spending power   When the Chancellor Rishi Sunak announced a Stamp Duty holiday to enable the homes market to breathe life into the post-lockdown economy, thousands of prospective house buyers must have raised their eyebrows and applauded wildly. It meant an estimated nine out …

Read more...