As pessimism turns to optimism
After a year dogged by Brexit deadlock, political turmoil, and slow growth, estate agents’ confidence in the property market hit a historic low in 2019 as activity in the housing market remained broadly subdued.
New enquiries from potential buyers fell, the number of agreed sales were low, and there were not enough new homes coming on to the market for sale, with political uncertainty causing people to sit on their hands, while stretched affordability remained a major issue.
You would expect the situation to leave agents feeling pessimistic about the housing market’s prospects over the coming 12 months but there are genuine signs of optimism among the gloom as we enter a new decade, with evidence of a sudden uplift in buyer demand now the general election is over.
According to Rightmove, demand across the UK from prospective buyers increased by 28% in the four days after the election compared to the same four days in 2018, with the biggest jump recorded in London, up 54% year-on-year.
Rightmove’s housing market analyst, Miles Shipside, said: “Some of the pent-up demand from the ‘wait-and-see’ buyers is starting to show signs of being released. With more political certainty than before we could be shaping up for an active Spring market.”
Many analysts forecast that there will be growth in 2020, owed in part to what some are describing as a ‘Boris bounce’ in the economy, and thus a healthier housing market, as we break away from political ambiguity.
So will “The ‘Boris bounce’ put an end to the recent stalemate in the property market and offer confidence to buyers and sellers alike to make a move?
We certainly hope so!