January is always a time for a fresh start, but for the London property market, there is a sense that January 2020 is going to be the start of a momentous year. The Conservative Government now holds a sizeable majority, and this year is expected to be more stable politically.
There is still Brexit and the March Budget to take place, so no one is 100% confident about what the year will hold, but progress has been made. Regardless of your political viewpoint, the housing market has been hindered by political uncertainty in recent years. If this can be better managed, there is the hope of the housing market performing more steadily in the next 12 months.
House price growth is expected in London
A recent study carried out by JLL predicts house price growth in Greater London will be 1% in 2020, 2.5% in 2021, and 4.5% in 2022. House prices have reached affordability limits, and some industry experts believe house price growth in London is likely to be tempered by interest rates. There is a viable chance that mortgage rates will become even more affordable in 2020, which should assist buyers in stepping on to the property ladder.
Sarah Guershon is a mortgage expert at money.co.uk, and she said: “The market is extremely competitive at the moment and rates have remained consistently low. The good news is that if the base rate does drop, as looks likely, this could be reflected in a mortgage rate drop too.”
There is also hope the Government lives up to promises made in their pre-election manifesto. If further support is provided to homebuyers, it is easy to see why there is cautious optimism for the London property market in 2020.
We ensure you stay in touch with London and Hackney housing market
According to Zoopla, the average price paid for Hackney property in the past 12 months is £630,960. This compares with an average price of £636,222 in Hackney borough in the past 12 months. Rightmove list the average price of property in Hackney as £596,264, and say the majority of properties sold in Hackney in the past year are flats. The average price of flats in Hackney in the past year, according to Rightmove, is £500,536.
Zoopla is on record as expecting a 2% market drop in the year which lies ahead if interest rates rise. However, Rightmove have stated their opinion the London property market has seen prices plateau in the second half of 2019, which will lead to an increase in the market.
While political uncertainty, and a lack of homes being supplied to the market, means people should be cautious about property moves in 2020; there will be many opportunities to move. Hackney remains an excellent choice in the capital, and we believe this year is set to be an exciting one in the local housing market.
If you are planning on selling your Hackney home in 2020, contact us to arrange a property viewing. We have helped many Hackney homeowners sell their property, and we can assist you in adding value to your property. To improve your home and enhance your sales prospects, please contact Wild & Co today.