*This post was written in collaboration with Flagstone
(Image taken from Pixabay.com)
After all of the uncertainty of 2019, people are looking to 2020 to be the year that a certain amount of economic stability resumes. Now the general election is over and done with, and we have a clearer picture of how Brexit is going to play out, it’s easier to look at how it might have an impact on things like home buying trends in 2020. Economists and property experts have always looked to London when making predictions about the year ahead, so what does 2020 have in store for the property market in the capital?
The start of the year could be busy
Typically, people wait until the spring to find themselves a good mortgage brokers and start thinking about either buying or selling their dream home. But there has been speculation that demand that has built-up in the recent years and months may now be unleashed onto the property market. This could lead to a short-term increase in demand in the start of the eyar, which is being penned the “Boris-bounce”.
The market will be optimistic
In the wake of the general election, there was a lot of new to take in. Many people were interested in what the result would mean for Brexit or public services. This is why people could have easily missed the news of overseas investors completing high value deals in the hours after the result was announced. Many affluent people turned straight to their mortgage brokers and completed deals that had been put on hold due to all of the political uncertainty of the UK. One Belgravia mansion was even sold for £65million, so it is clear regardless of what foreign investors think of Boris Johnson as PM, they certainly trust him with the economy.
Crossrail will increase prices across the Elizabeth line
When Crossrail is finally finished, it will connect the city to Shenfield. This means that any of the towns along the line are likely to see house price increases. Places like Ilford and Romford are likely to see investment and the construction of “micro-towns” like Riverside in Barking.
First-time buyers will be given support
People looking to find their dream home can often be put off by the prices and the fact that the mortgage process is so stressful. But the government are acutely aware of how important first-time buyers are to the UK property market. With the “Help to Buy” scheme, many first-time buyers have been able to afford properties in the boroughs just outside of the city. The “Help to Buy” scheme will have an update under the Tory government, with the new policy being called “First Homes”. The government has promised that this will allow up to a 30% discount for first-time buyers. Although there is a lot of speculation on how this will actually work, it is still likely that schemes like this will give first-time buyers the confidence to start looking into property ownership within the next few years, which will provide a stable, ongoing boost to the market.