When looking back on the property market this year, the main message we can take is that it has remained extremely resilient in testing times. Despite the challenges faced by Brexit, a general election, and a shortage of properties coming to the market it has continued to remain strong and perform well.
It’s too early to review the whole year in detail however during the first nine months of this year the number of sales across the whole of the UK was only 1.1% lower than in the same period in 2018, which is well within a normal range.
Throughout the year the economy has proven to be more robust than most expected and predicted at the start of the year. This year has seen record employment levels and wage growth.
First-time buyers have continued to benefit from the property market circumstances this year, with low mortgage rates and a high level of mortgage approvals. The lower stamp duty rate and the continuation of the Help to Buy scheme has also helped to support these buyers. So much so that in August mortgages to first-time buyers reached a 12 year high.
Over the last two years, the rate of growth in England and Wales slowed from a peak of 6.8% in August 2017 to a low point of -2.5% in May 2019. However, price growth has since bounced back, with the latest figure for September 2019 showing 2.5% positive growth on the previous year.
So what will next year look like for the property market? Experts are predicting house price growth in the UK to be between 0% and 2%. If we take a mid-point of 1%, that would mean that the average flat in England and Wales to rise by £2,860 and the average house to rise by £2,920.
Whilst there are likely to be changes next year that will affect the property market, it’s likely that the market will continue to remain resilient. If you are thinking about moving in the New Year or are just interested in the value of your property or more information about the local property market in your area then call our property experts at your local branch.