Research found that house prices in 2019 grew ‘incredibly slowly’ due to political and economic uncertainty in the UK, leading to rises of just 1% in England.
While there were some increases in areas across the country, as a whole, the property market was looking bleak.
For 2020, we could be expected to see more significant growth in property prices, albeit not a large one. The February Budget is also expected to affect the market, however it’s largely expected that house prices will increase. Elsewhere, they also found that the cost of renting could increase by an even greater rate, as the number of letting properties is currently low (which could prompt a rise in prices).
While the number of homes currently on the market is lower than in previous years, first-time buyers could struggle to find a suitable property, but renewed industry confidence could lead to a surge in the number of properties being listed. And if house prices do rise, many first-time buyers could find it a challenge to save for a deposit. The positive news is that mortgage rates remain low. They may rise in 2020, but any increase is likely to be modest.