Annual house prices growth in England and Wales will reach the highest level seen since November 2018 next month as buyers scramble to complete deals before the Brexit deadline, reallymoving has predicted.
The reallymoving House Price Forecast has growth pegged for 3.1% in September and 2.8% in October. It also predicts that average values will rise by 1.5% over the next three months (August to October 2019), continuing their steady climb.
It adds that particularly strong growth in August will see prices increase by 3.2%, before dipping by -1.4% in September.
Rob Houghton, CEO of reallymoving, said: “The outlook for the property market over the next three months is remarkably positive, considering the current political and economic context.
“The recent election of a new Prime Minister who is committed to leaving the EU on Halloween even if a deal isn’t reached could mean clouds are gathering on the horizon, but any impact on prices in the short term is likely to be mitigated by the urgency of home movers to complete deals in the next three months.”
As homebuyers register for quotes for home move services on the site typically twelve weeks before their purchase completes, reallymoving is able to provide an accurate three-month property price forecast based on the purchase price agreed.
They also provide both seasonally and mix adjusted data, accounting for the seasonal trends in house prices and variations in the location and types of properties quoted for. Historically, reallymoving’s data has closely tracked the Land Registry’s Price Paid data, published retrospectively.
Annual price growth has been in positive territory since June and will remain so for the next three months, with prices in October forecast to be 2.8% higher than twelve months previously. This is the highest rate of annual growth seen for nearly a year, since November 2018.
Underlying conditions in the broader economy continue to underpin the housing market and support year-on-year price growth, particularly high employment levels, low interest rates and rising household incomes.
Houghton added: “While the longer term outlook remains uncertain, we could see a Boris Bounce in the property market if he is true to his word over stamp duty reform and stimulates the market through tax cuts at the top and bottom.
“Scrapping stamp duty for downsizers could be a cost-effective way to stimulate activity throughout the market, freeing up family homes and enabling chains of transactions, at relatively little cost.
“Annually, house prices in October are on track to be 2.8% higher than they were in October 2018, which is further evidence that home movers have become tired of the wait and see approach and decided to move on with their lives.”