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

Michael Lloyd

January 2, 2020

property prices

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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