House prices and rents to rise next year…

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Rent Increases:

Landlords can perhaps be forgiven for rejoicing at the prospects of an early Christmas present, after all the uncertainty endured pre-election 2019.

House
prices are
expected to grow
twice as fast, and
rents
will accelerate next
year, following the decisive December
General Election
result,
that’s
according
to a new
RICS survey.

The
Royal Institution of Chartered Surveyors thinks
that house
prices will
grow
by 2% next year, more than doubling
the current
0.8
per cent growth rate. Likewise,
rents are likely to increase
by around
2.5%.

The
RICS
forecast
is
backed-up
by Rightmove’s
own assessment of the market for 2020. The
leading property listing website is also
predicting an
average UK house
price increase
of 2%
next year.

Rightmove
expects
a bumper demand
for the spring selling season. The
biggest price increases
are
expected in
the
north
of
England. Here
prices may rise between 2
and
4%,
whereas
in London
and the South East rises
could be more modest at around 1%.
Here,
prices may still be under a cloud, awaiting the outcome of the trade
negotiations with the EU.

A
RICS economist is quoted as saying:

“Challenges
around affordability and low stock levels will continue to drag on
the market, and Brexit uncertainty could resurface as the next
deadline draws closer. As such, we expect house prices to rise by
just 2 per cent next year, with the outlook for overall sales volumes
broadly flat”

RICS
says
that the continuing uncertainty
over
the final trade agreement with the EU would
still
have a slowing effect on sales numbers,
with
overall sales expected to flatline for the whole of next year.

Sales
figures actually fell between September
and December, according
to official figures, and there was a shortage of rental properties
coming
on
the
market. Landlord
instructions are down according to RICS
members
surveys, for the 14th
successive quarter. As
a result, average rents
are expected to rise by an average of 2.5%, and
in London this figure could be 3%.

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