Housing market expects to benefit from ‘Boris bounce’ despite Brexit

The housing market should start 2020 with a new mood of confidence – but continued political uncertainties will keep a lid on property prices, economists predict.

Several predictions for house- price growth across 2020 are clustered around the 2 per cent mark, with experts claiming the Conservatives’ general election victory could help to bring more certainty to the market and unleash some pent-up buyer demand. An abundance of low-rate and low deposit mortgage deals should also support activity. Some estate agents are even sensing there may be a “Boris bounce” for the housing market, which could in the coming months have an effect on house prices. Lucy Pendleton, founder director of estate agent James Pendleton, said: “Not yet visible is the Boris bounce in house prices we all sense is already well under way.” However, Brexit concerns could also pick up as 2020 progresses, making people behave more cautiously, and afford- ability constraints will also cap price growth in some parts of the UK, economists said. Howard Archer, chief economic adviser at EY Item Club, said the Conservatives’ strong election win could ease some uncertainties and help house prices rise by around 2 percent in 2020.There will still be appreciable uncertainties, including on the Brexit front – so that the upside for house prices in 2020 is likely to be limited.

Rightmove also predicts that the price of property coming to market will increase by 2 per cent in 2020. It said there is now an opportunity to release some pent-up buyer demand that had been building before the general election.

Lawrence Bowles, senior research analyst at Savills, said: “At the top end of the market in particular, we’ve seen a strong build-up of new buyer demand. Greater political certainty will unlock some of that demand, but with less than a year to agree a Brexit deal, there are still many unknowns.

Original article by Vicky Shaw – The i (in print)