2019 was undoubtedly difficult for many stakeholders in the property sector. Construction started to decline, sellers were deterred from placing their properties on the market and property growth was stifled to less than 1%.
However, the general election and a definitive Brexit outcome helped end the year with more clarity over the UK’s future. Despite this, property experts remain divided over the year ahead, according to a NAEA Propertymark survey.
A third (32%) expect housing supply to continue its downward descent whilst 28% think supply will increase given the greater clarity.
Although more than half of respondents (56%) foresee house prices remaining the same in 2020, over a quarter (28%) believe they will fall.
Mark Hayward, Propertymark Chief Executive, commented:
“The changing political landscape throughout 2019 has undoubtedly caused uncertainty in the housing market, which in turn has affected sentiment and decision-making. Once the current political impasse is resolved and it’s clear how and when we’ll be leaving the EU, we hope there will be a degree of certainty which may trigger a flurry of activity.
“Regardless of the colour of the new Government, housing must be a priority. A clear strategy is needed to tackle key issues such as stamp duty costs. Additionally, we’d like to see the Government commit to bringing regulation into the sector as soon as they can in the New Year and to consider the introduction of digital logbooks to allow for a more interactive, streamlined and transparent process for home buyers and sellers. The housing market needs reassurance from the Government, which will in turn inject some confidence in the market for both buyers and sellers.
“Despite the difficult year, the UK property market remains a strong sector overall, and has demonstrated a huge amount of resilience in the face of political turmoil. We hope for a more certain outlook and some stability in 2020, which is hopefully provided sooner rather than later.”
Do you think supply will increase in 2020? Will house prices remain the same this year?
