< Back to blog

House prices set to rise by up to 4% in 2020 Posted On 17 December 2019

The results of the election have prompted Rightmove to predict that house prices will rise by up to 4% in 2020.

The prediction is welcome news for the property market and those looking to sell next year, especially after the market had been hit with political uncertainty since the 2016 referendum.

With such a clear majority gained in the election, Rightmove says that there will now be more opportunities to release some of the pent-up demand in the spring.

“The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand,” explains Miles Shipside, Rightmove director and housing market analyst.

“Rightmove measures the prices of 95% of property coming to market, and we predict that buyers and sellers will on average see a 2% rise in those prices by the end of 2020.

“While this is over twice the current annual rate of 0.8%, it’s still a relatively marginal increase as it’s a price-sensitive market.

“There will be regional variations. London is finally showing tentative signs of bottoming out, and we expect a more modest price rise of +1% in all of the southern regions where buyer affordability remains most stretched. In contrast, the largest increases will be in the more northerly regions, repeating the pattern of 2019 with increases in the range of 2% to 4%.”

Rightmove says that 2019’s annual rise in price is slightly above their forecasted figure of 0% – ending the year at 0.8%, which they say is due to demand outstripping supply.

“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,” says Shipside. “However, property supply is still limited, with estate agents having the lowest proportion of properties available for sale in two years, and this will fuel modest gains in the national average asking price of property coming to market.

“The fundamentals remain sound with low-interest rates, lenders competing to lend, high employment, and average wage growth outstripping house price growth and helping buyer affordability. The statistics for 2019 encouragingly show that the ‘have-to’ and ‘life-stage’ markets have been carrying on, and we hope that the more certain outlook would encourage many would-be discretionary movers to finally get off the fence.”

< Back to blog

Connect with us

Recent Posts

Clean-up operation

Why not take some time to get your house in order The decorations are long gone, the tree is decomposing in the back garden, and you’re still finding fiddly remnants embedded in the carpet. While your on your knees, have a quick look at the skirting boards: were they really always that dusty? And where …

Read more...

New Help to Buy Scheme is up and running

Homes England has announced that first-time buyers can now apply for the new Help to Buy Equity Loan Scheme   The Help to Buy scheme has been around for a while now, however, from the 16th December last year, the new Help to Buy: Equity Loan scheme has been open for applications from first-time buyers …

Read more...

The beloved annual tradition.

Robert Burns is a national icon and beloved Scottish hero, but do you know why? Poetry is far from dead, and so is Scottish tradition, especially when it comes to this poet who forever changed nations’, ways of thinking. Once the magical Christmas dust has settled, and the New Year’s celebratory confetti has finally fallen …

Read more...

Figures show healthy start to year for property market

Online giant pinpoints reasons for upsurge hours after hopes to extend Stamp Duty deadline hit a snag   Latest figures show the property market has made a buoyant start to the new year – thanks to the Stamp Duty holiday, virtual viewings and other innovative ways estate agents are helping buyers and renters. Rightmove, the …

Read more...

Low-deposit mortgages return

  A four-fold rise in mortgage products for homeowners with a 10% deposit   Since last summer there has been a four-fold increase in low-deposit mortgage products available. The low-deposit mortgage products, which offer deposits as low as 10%, will offer some relief to first-time buyers.   Last September there were only 44 mortgage products …

Read more...