Despite uncertainty surrounding Brexit and trends seen in 2019, "house prices in 2020 are likely to be significantly higher than in 2019 - prospective home owners and investors take note," says Real Homes.
Original article published by Real Homes.
House prices 2020: what's in store for the UK? With all the problems the housing market has faced following the UK's vote to leave the European Union, can we expect prices to continue falling, or at least see a consistent slowing down of house price growth?
The latest predictions may or may not be encouraging. depending on whether you are a homeowner at this point, and whether you're planning on taking out a mortgage in the foreseeable future. If the former, you will probably be relieved by the most recent house price forecasts; the latter - and you will need to seriously consider your options as soon as possible.
According to forecasts by the Centre for Economics and Business Research, the year 2020 could see a sharp rise in house prices, which would see the average UK house price rise to £320,000. In the short-term, this may restore confidence in the housing market and allow those homeowners who have been unable to move up to do so. But this is not good news for first-time buyer affordability: as rates of home ownership in the UK continue to fall, a sustained slowing down of house price growth is needed to give wages time to catch up with property prices.
As it stands, this won't happen, with house price growth continuing to outstrip income growth at levels that even the CEBR are saying are not sustainable. Those thinking of buying in London will feel the pinch, especially keenly - average house prices in the capital are already well past the £500,000 mark.
What's a first-time buyer to do? We'll reiterate our advice: if you've found a suitable property and are in a position to buy, do it now, and secure a good, fixed-rate mortgage. The longer you wait, the bigger your loan is likely to be.