House Prices Set to Rocket in 2020
At last! The result of the recent General Election has restored confidence to the public, giving buyers and sellers an added level of certainty and a reduced level of risk. New research based on a Conservative victory, let alone such a strong one, anticipated that prices in the East Midlands would increase by 4% on average.
Not only that, but the increase is likely to be seen as soon as February 2020 as a positive consequence of such a subdued market in the previous year.
Ralph Wyrley-Birch, Senior Partner at Mount & Minster says "This welcome news is hardly surprising, given that we see peaks and troughs in such models all the time over many years. Now the political uncertainty has wained, we expect that new sellers will come to market at a time when buyers are happier to acquire a very valuable asset, with less risk of prices taking a dive as they did not so long ago in 2008. How long this surge will last will depend upon early clarification of the Brexit timetable and sticking to it."
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. However, property supply is still limited, with estate agents in the East Midlands having the lowest proportion of properties available for sale in two years, and this will fuel substantial gains in the national average asking price of property coming to market.
Mr Wyrley-Birch continues "This increase is set to be reflected in offers being made by early Spring. Given the low supply at the moment and going into the New Year, this will allow those on the market to benefit from this surge. Those who wait and are reactive to the increase will join so many others, by which time the supply will increase and buyers will have more choice, meaning you will need to be sensible with your pricing. In short, act now and you're more likely to be better off."
Mount & Minster are already seeing an increase in applicants from London and the South East, particularly around Grantham, Newark and Lincoln, particularly given the announcement of more frequent and regular trains to the Capital. The local award-winning firm benefit from an office in the West End on St James Place as a means of promoting the increasingly popular East Midlands region to more affluent buyers seeking more for their money and good transport links.