How will the General Election result and Brexit effect the housing market?
The Conservative Party’s landslide General Election victory has been welcomed by many in the property industry, with a post-election ‘super bounce’ being predicted by some.
In many parts of the country, the housing market has been on hold whilst buyers and sellers have lacked confidence as a result of the economic and political uncertainty which has gripped the country for so long, with the Royal Institute of Chartered Surveyors having described the market as being ‘haunted’ by the lack of clarity over Brexit.
Uncertainty always dampens the markets but now that Boris has got a green light to ‘get Brexit done’ it is widely believed that this will bring back at least some short term stability whilst we await the finer points of policy and confirmation of a definitive timetable.
With both the pound and the stock market responding very positively to the election result, it is now expected to see confidence return to the housing market too. Many of those who have been sitting on their hands and putting off selling will now look to put their homes on the market and with a boost in supply, transactions will increase which is in turn good news for the wider economy. Following the outcome of Thursday’s vote, Rightmove are now predicting an average 2% increase in house prices for 2020 and one upmarket estate agent in London claims to have negotiated £53 million of property deals within hours of the Conservative victory!
But what does all this mean locally? At Eden Estates, here in the heart of the Wyre Forest, the final quarter of 2019 has seen unprecedented levels of sales agreed as buyer demand has remained strong, albeit with the supply of fresh property not keeping up. Ironically, the concerns of many potential sellers that Brexit uncertainty was going to hinder the sale of their property has actually had quite the opposite effect. The lack of supply has created limited choice which in turn has resulted in some very strong prices being achieved for those brave enough to have carried on regardless.
With confidence returning to the housing market, an increase in supply of new properties is likely to keep prices in check to a certain extent but equally, all that pent up buyer demand could lead to a feeding frenzy of activity which could push prices up further than expected. Our view here at Eden Estates is that we will probably see a quietish start to the year with some steady price growth and an increase in transactions after Brexit has been triggered at the end of January and we head towards the Spring.
If you are thinking of selling in 2020 book a free valuation with Eden Estates to get all the latest market information, an honest appraisal of your property’s value and a marketing consultation to advise on the best way forward.