Andrew Montlake: Housing transactions and house prices will rise in 2020

Michael Lloyd

January 2, 2020

property prices home earnings

This year, housing transactions will pick up and house prices will rise by 2% to 3% according to Andrew Montlake, managing director of Coreco.

He said that the first half of the year may contain more activity than the second.

Montlake said: “With the General Election result finally delivering political clarity in relation to our exit from the EU, transaction levels look set to pick up in 2020.

“Clearly a lot of the hard work around Brexit has yet to be done, but the political stability provided by a strong Conservative majority will give a lot of people the confidence to finally move home.

“There’s a huge amount of pent-up demand for property and that will start to show through quite early in the New Year.

“In 2020, Spring for the property market is likely to start in mid-January.

“With competition among lenders reaching feverish new heights, mortgage rates will remain highly attractive during 2020, giving people even more reason to buy and sell.”

Montlake added: “In recent years, the regions have outperformed the capital and while this trend may continue in 2020, there is a growing feeling that the London market has now bottomed out.

“Affordability will remain a key issue for many borrowers, especially in London and the South East, and so the Bank of Mum and Dad, or Gran and Grandad, will play as critical a role as ever.

“The first half of the year may see more activity than the second, as the feel-good factor caused by the General Election result slowly fades and the complexity of the trade negotiations ahead becomes clearer.

“Overall, we expect average prices to rise by 2–3% during 2020, conservative growth in historical terms but significantly up on the sub-1% growth of recent years.”

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