2020 has been an extremely challenging year. However, even in facing so many challenges, the UK housing market has performed stronger than many people have expected or predicted. The UK is officially in a recession, but demand for homes is high, and a leading property portal expects prices to remain consistent for the rest of the year.
Richard Donnell is the Director of research and insight at Zoopla, and he recently conducted a Q&A session on their site.
Are you looking for information on what happens next in the housing market?
When asked what is in store for the housing market for the rest of the year, Richard said; “Recessions typically impact sales volumes more than house prices. The number of sales is already low by historic standards and we expect it to be 20% lower this year as a result of the housing market being shut for almost two months. We still believe that house prices will end the year 2% to 3% higher than at the start. There are a number of reasons why we don’t expect a major fall in UK house prices.”
Richard also said; “Firstly, house prices are rising at low rates and a jump in forced sales seems unlikely. Lenders are supporting existing borrowers and credit is still available for buyers seeking low loan-to-value mortgages. Secondly, unemployment is rising but it appears to be focused on the younger generation who are typically renters rather than homeowners. Thirdly and finally, mortgage regulations restrict borrowers’ ability to ‘bid up’ the price of housing – and therefore limit the downside for house prices.”
What will happen to house prices in UK?
Richard was asked what the current situation will mead for house prices in the rest of 2020. He responded by saying; “The housing market got off to a strong start in 2020. With lockdown restrictions now lifted, it has taken off again. Government has played a key role in supporting consumer confidence. House price growth is holding steady, with 16 of the 20 cities tracked by the House Price Index recording growth of 2% or more.”
Richard continued by saying; “Average prices are increasing at more than 4% per annum in Nottingham and Manchester. It’s also interesting to see the housing markets reigniting in London and south east England. They’ve had weak market conditions in recent years but improved affordability and the recent stamp duty holiday have had a knock-on impact on activity.”
With Nottingham being highlighted by Richard Donnell at Zoopla, it is clear that the local market is performing well. If you are keen to make a move, or you need guidance in what is likely to happen next, arrange an appointment and we will be more than happy to assist you.
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing steven@holdencopley.co.uk.