The majority in the general election gives home movers more certainty with the prospect of house prices rising 2.0%, says Righmove.
Research from Rightmove shows demand for property from home movers is resilient with more confidence after the general election where the conservatives have secured a majority government.
Rightmove has predicted house prices could increase by 2.0% in 2020 as pricing power by sellers is boosted by a lack of supply with stock of homes at a two year low.
National average house prices have reduced by -0.9% or -£2,783 for the month to £300,025 as the number of new homes on the market falls 8% in 2019 and the number of sales agreed down by 3%.
Fundamentals remain sound
The market fundamentals are sound with low interest rates in a competitive mortgage market and high employment with rising incomes improving affordability for first time buyers and home movers.
For first time buyers the average asking price has reduced by -0.5% or -£992 for the month to £190,009 which is 0.9% higher over the year.
Average asking prices for home movers is greater at £271,394 which is up 1.3% over the year and lower by -0.7% or -£1,897 for the month.
Demand for property has remained level and exceeds supply despite the uncertainties created by Brexit since the referendum in 2016.
Miles Shipside Rightmove director said, 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.
The supply of properties is limited as estate agents reporting the lowest proportion of homes for sale on the market in the last two years propping up house prices.
This lack of suitable homes could mean remortgage buyers staying in your existing property and avoid the cost of moving until the supply improves.
London market has bottomed out
After a period of declining house prices the London market has bottomed out in the second half of the year and Rightmove are predicting a modest rise of 1% in 2020.
Prices in some boroughs are down with Brent lower by -4.2% with average prices at £552,496 and buy-to-let landlords may look to outer London for affordable properties to help improve rental yields.
For Greater London average property values are £600,145 reducing -0.5% or £9,361 over the year whereas for inner London average prices are £738,025 down -2.5% or £17,225.
For London higher house prices has resulted in stretched affordability and improving property values is being assisted by a 21% fall in the number of sellers in the second half of 2019.
Even so there are signs of improved sales rising 1% this year compared to the same period in 2018, despite fewer properties on the market.
Older remortgage buyers may help to reduce the supply of family homes on the market by not downsizing, with the equity release mortgage buyer accessing cash to pay university fees for grandchildren or for home improvements.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to maintain your standard of living as costs rise.
Learn more by using the mortgage monthly cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
