With optimism for the 2020 housing market being higher than previous years, it is pleasing to see statistics from leading industry experts indicating there is a cause for positivity surrounding the property market. The March Budget and Brexit may alter things, but for now, it appears the UK housing market is in more robust shape than it has been for many years.
The latest information provided by Halifax indicates there has been an increase in annual price growth since the start of the year. The annual house price growth has risen to 4.1% in January. This comes after gains of 1.2% and 1.8% in November and December 2019 respectively.
Halifax believes the market is rising
Halifax also point out that in the most recent quarter, house prices were 2.3% higher than they were for the previous quarter.
Russell Galley is the Managing Director of Halifax, and he said; “A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy. However, it’s too early to say if a corner has been turned. The recent positive figures may actually represent activity that would ordinarily have been expected to take place last year but was delayed by economic uncertainty. So while housing market activity has undoubtedly increased over recent months, the extent to which this persists will be driven by housing policy, the wider political environment and trends in the economy.”
With Nationwide figures being slightly more muted, some industry experts point out that Halifax tend to paint a rosier picture of the property market than many industry observers. This may be the case, and caution is always advised before making a major commitment, but you can see why many people are keen to get on with business.
Many people have waited to make a move in UK housing market
The increase in pricing is being attributed to a release of the pent-up demand and supply in the market. The uncertain political landscape has led to many people holding off from making a decision regarding property moves, but it seems as though more people are of a mind to move in 2020.
We know there are many places undergoing considerable change and redevelopment, but we believe Stockport has a lot to offer. Many industry experts are looking towards the North as a place to find value for money; and Stockport has the potential to meet the needs of a wide range of home-buyers.
With convenient transport links to the centre of Manchester, and significant developments taking place, Stockport is the ideal place to buy, live or invest. As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html
“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upward price pressure. The environment for mortgage affordability should stay largely favourable. However, with the growth in rental costs accelerating, many first-time buyers will continue to face a significant challenge in raising necessary deposits.”
"It’s likely that the uptick in pricing is based on a release both of pent-up demand and supply. The data masks a fundamental shortage of properties priced at affordable levels in the places where people want and need to live, however. It also masks who is buying - more first-time buyers and fewer landlords."
Lucy Pendleton, founder and director of James Pendleton estate agents, says: “The Halifax is renowned for giving bigger growth readings and for two consecutive months now it hasn’t disappointed. There are so many buyers coming out of the ground, it’s like Watership Down meets Location, Location, Location.
“Confidence is key and it has been driven close to extinction since the Brexit vote but now it’s everywhere. Even on a basic human level, new clients are coming in smiling with an optimism that the industry has sincerely missed.
“The market’s leading indicator, the Nationwide HPI, was more muted in its reading of house price growth last month, but the Halifax is clearly signalling that, as buyers and sellers flood back to the table, it is demand that has the run of play.
“A Boris Bounce is beyond doubt now but, with a Budget looming, Downing Street will have to keep a close eye on how the market’s new direction will affect first-time buyers and young families.”