Second-guessing the property market is always tricky – there are so many variables that aren’t always easy to predict. But if you’re planning on buying or selling a property, you need to know if house values are likely to go up or down. What will happen in the property market next year? We take a look at expert predictions on house prices in 2020.
The current climate
House prices have always been linked to what’s going on in the wider world, and that’s especially true in the current climate. There’s a lot of uncertainty surrounding Brexit, and this is having a knock-on effect on the property market, making buyers hesitant to take the plunge without knowing if the UK will exit the EU with a deal.
Other factors are also causing a slow-down in the market, such as the high cost of a deposit and difficulty for buyers in getting credit, which are both stopping first-time buyers from getting on the ladder. Together, they mean an overall fall in property prices.
What will happen to house prices in 2020?
Some experts fear that a no-deal Brexit would have an immediate negative impact on property prices, knocking down house prices by as much as 20%. Others are more positive, however, predicting that house prices will grow by over 13% over the next 5 years. It’s likely that there will be significant variations from region to region – so depending on where you live, the news could be very different.
London and the South East
Some London properties are more likely to keep their value in an uncertain financial market, as the wealthier buyers who can afford prices in the capital are less dependent on getting credit for a mortgage. On the other hand, the higher-than-average property prices in London and the South East are likely to be prohibitive for average buyers, keeping them out of the market and perhaps leading to an overall slump in sales.
South West England and East Anglia
The South West and East Anglia are likely to see property prices stay broadly the same throughout 2020.
Northern Ireland, Scotland and Wales
Expert predictions look more positive outside of England, with property prices in the nations set to continue their rise in 2020. There’s a similar story in the North West of England.
Is it a bad time to sell?
If you’ve been thinking of selling up in the next year or so, the property market predictions in your area may make you think twice. But it’s not all doom and gloom. Some of the stagnation in the property market is likely to be temporary, with house prices slowly recovering after the initial shock of Brexit – hence the healthier five-year outlook.
In the meantime, many homeowners are choosing to stay at home and opt for an extension or loft conversion, rather than upsizing to a bigger property. The advantage of this is that when the time does come to put your house on the market, the added value of your extra space will command a higher asking price.