Following the UK general election and Brexit deadline, increased activity in the market is signalling strong investor confidence at the start of 2020.
Summary:
- Annual property price growth in the UK rose to 4.1% in January 2020, the highest rate of growth recorded since February 2018
- Prices in January increased by 0.4% month-on-month, with market commentators attributing the growth to a ‘Boris bounce’ following the UK’s general election and EU withdrawal
- Increased activity in the market underlines the rising level of confidence amongst buyers and investors
It’s been a good start to the year for the UK’s property investors.
You may have heard some commentators referring to a ‘Boris bounce’. And it seems that ever since the outcome of December’s general election, which saw Boris Johnson’s Conservative party win a strong majority, there’s been a significant rise in activity in the UK property market.
Now Halifax has revealed its latest index figures for January 2020, revealing that average property prices increased 0.4% from December 2019.
It means that the UK’s annual rate of price growth has now reached a two-year high of 4.1%
This data followed similarly positive figures published by Nationwide at the end of January, which stated that price growth measured by its index is now at a 14-month high.
It seems that, with a new government decided and with the 31st January’s Brexit deadline passed, more buyers and investors are returning to the market. Furthermore, it also suggests that there was a high level of ‘pent up’ demand from those who were waiting to make their next move in the market at the end of 2019.
Russell Galley, Managing Director of Halifax, explained: “A number of important market indicators continue to show signs of improvement. We have seen a pick-up in transactions with more buyer and seller activity consistent with a reduction in uncertainty in the UK economy.”
“Looking ahead, we still expect a moderate rate of house price growth over the course of the year. Demand is likely to continue to exceed the supply of properties for sale across the UK, with the subdued pace of new building also adding to upwards price pressure.”
