It is not an exaggeration to say 2020 has been an interesting year in the UK housing market. There have been many ups and downs, and even though there is great activity in the market right now, it is understandable that many people are looking for clarity and guidance on what will come next.
It is always good to get insight from trusted sources in the industry, and with Zoopla being one of the biggest names in the UK property market, information from their leading names is of value. Richard Donnell is the Director of research and insight at Zoopla, and he recently conducted a Q&A session on their site.
Are you looking for information on what happens next in the housing market?
When asked what is in store for the housing market for the rest of the year, Richard said; “Recessions typically impact sales volumes more than house prices. The number of sales is already low by historic standards and we expect it to be 20% lower this year as a result of the housing market being shut for almost two months. We still believe that house prices will end the year 2% to 3% higher than at the start. There are a number of reasons why we don’t expect a major fall in UK house prices.”
Richard also said; “Firstly, house prices are rising at low rates and a jump in forced sales seems unlikely. Lenders are supporting existing borrowers and credit is still available for buyers seeking low loan-to-value mortgages. Secondly, unemployment is rising but it appears to be focused on the younger generation who are typically renters rather than homeowners. Thirdly and finally, mortgage regulations restrict borrowers’ ability to ‘bid up’ the price of housing – and therefore limit the downside for house prices.”
What will happen to house prices in UK?
Richard was asked what the current situation will mead for house prices in the rest of 2020. He responded by saying; “The housing market got off to a strong start in 2020. With lockdown restrictions now lifted, it has taken off again. Government has played a key role in supporting consumer confidence. House price growth is holding steady, with 16 of the 20 cities tracked by the House Price Index recording growth of 2% or more.”
Richard continued by saying; “Average prices are increasing at more than 4% per annum in Nottingham and Manchester. It’s also interesting to see the housing markets reigniting in London and south east England. They’ve had weak market conditions in recent years but improved affordability and the recent stamp duty holiday have had a knock-on impact on activity.”
“At Thomas Morris, we appreciate the stamp duty holiday has led to many buyers engaging the local housing market”, said Thomas Morris St Neots Branch Manager Andrea Delaney. “We are keen to support all local buyers and vendors. If you have any questions, or you would like to make a move, please get in touch.”
If you are looking for help with any matter of the property market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively or you can phone our St Neots branch on 01480 403020.