The start of a New Year is a time for a change, but it is also the time people look forward. When it comes to the property market, there is some optimism surrounding what will happen in 2020. This is based on the political stability which the UK is likely to experience this year, something which has been sadly lacking in recent years.
It is not as if political instability is the sole reason the housing market has been so challenging in recent times, but it has been a significant factor. With Brexit and the new Government’s first Budget looming in the first quarter of 2020, there are still uncertainties to consider. Still, there is a growing number of industry experts who expect property deals to increase this year.
However, there are many different components to consider in the property market, and we look ahead to some of the likely 2020 property market trends you will see this year.
Industry experts expect property availability to continue to decline
Figures suggest the number of homes available to buy in the UK is at its lowest level since 2009. Rightmove figures suggest new property listings have fallen by 15%, and sales prices have fallen by 1%.
The Budget may go some way to revitalising this aspect of the market. If there is stamp duty reform which is helpful to vendors, this trend may halt. However, until we are aware of what the 2020 Budget entails, it is impossible to predict if the decline of available houses will change.
Inevitably, this will see the rental market remain stable in 2020. If houses aren’t being placed on the market, potential buyers have no option but to rent. The demand for rental accommodation in the UK has been increasing steadily since 2016, and much like the housing market, demand is outstripping supply.
Landlords may shape the property market in 2020
One aspect which could lead to an unexpected increase in homes available on the market is if landlords decide to exit the rental market. A recent study carried out by the Residential Landlords Association (RLA) spoke to more than 2,000 landlords. 34% of landlords said they expect to reduce their property portfolio in the 12 months which lie ahead.
Some landlords may sell a single property or two, others may sell more significant amounts, depending on the size of their property portfolio. If there is substantial movement in this market, it could lead to more homes being available in the market. Of course, it would also have a severe impact on the rental market.
If you plan on making a move in 2020, it makes sense to call on an expert for help. We are pleased to say we have assisted many people to make a move in and around Hitchin. While many uncertainties are surrounding the market for 2020, our experience and expertise provide you with assurance and confidence about your next step.
If you plan on selling or renting your home in 2020, we can provide you with a property valuation. No matter what you want to do this year, if you wish to discuss your options, please contact Country Properties Hitchin, and we will be more than happy to assist you.