The property market in the UK has endured a rocky 2019 due to affordability issues and political uncertainty concerning Brexit, but 2020 is off to a hopeful turnaround in the wake of the so-called “Boris bounce.”
Many believe there will be a boost in activity in the property market, but the Royal Institute of Chartered Surveyors (RICS) says that it will likely be short-term improvements. To put the concept into numbers, buyers and investors can expect a 2% growth in 2020 – a modest yet acceptably progressive growth.
With that in mind, there’s plenty to look forward to in the UK property for 2020 as Brexit finally pushes through:
Stable House Prices
The property market in 2019 was relatively bleak as house prices grew at a snail’s pace due to the economic uncertainty in the UK. For 2020, buyers should expect a 4% surge in prices, which is the biggest increase by far. It’s not necessarily an exponential growth, but it’s a welcomed start.
The cost of renting may also increase their rates due to the low prices of a significant number of letting properties.
A Struggle for First-Time Buyers
Seeing as the property market in the UK is seeing a rise in house prices, first-time buyers may find it a challenge to prepare for the initial deposit. Saving up for the initial lump sum can be tricky as first-timers find it difficult to put their foot on the market’s door in the first place.
Not to mention, starter homes are doubling their rates faster than the wider market as the demand continues to rise. Fortunately, Lifetime ISA is plotting ways to help people save enough for the upfront downpayment fees. Another good news is that the mortgage rates will remain relatively low.
A Greener Focus
As the world is becoming more eco-conscious, more and more industries are finding ways to incorporate sustainability in their operations. The property market isn’t an exception to the rule, so conscious consumers can celebrate the fact that homes are considering eliminating gas grids, while electric vehicle charging points will now become a necessary addition in all new homes.
The UK may be experiencing plenty of political and economic uncertainty, but one thing’s for sure: houses are moving forward with their green movement to help the environment reach a healthier state in 2020 onwards. Sometimes, the greener side of the lawn is better in this case.
As mentioned above, first-time homebuyers may find it difficult to step up the property ladder as house prices continue to rise. Not to mention, the hefty downpayment turns off plenty of interested buyers. That’s why the affordable housing sector is catching up with the Conservative Party’s agenda as they are showcasing significant gains in their pipeline.
The Bottom Line
The past year has been a rollercoaster ride for the property market in the UK. Now that the new year is in, there’s plenty of ups and downs to look forward to. On one hand, eco-conscious consumers are winning as the property market is going greener. On the other, first-time buyers may be in trouble as mortgages remain out of reach for many. All in all, the property market is off to a good and hopeful start.
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