16 Jan 2020
UK house prices are expected to increase accord to a survey by the Royal Institution of Chartered Surveyors, which showed “unambiguously positive” results.
There was a rise in property sales soon after Boris Johnson led the Conservatives to a victory in December, the survey highlighted. This takes place despite many concerns before the election that house prices would be negatively affected.
For the survey, RICS asked estate agents and surveyors to give out their perception on the housing market, who noted a jump in the number of agreed sales throughout December.
The survey, released on Thursday, highlighted a 31% increase in participants who expected that a rise in prices. Pantheon Economics’ Samuel Tombs said that the results are “unambiguously positive,” despite some of the surveyors still expecting a drop in prices.
RICS chief economist, Simon Rubinsohn explained that Johnson’s win in the election showed certainty for the Brexit deal to happen, adding confidence which was in turn reflected in the rising house prices.
He added saying that is unsure whether this confidence will hold ahead of talks between the UK and the European Union. “Whether the improvement in sentiment can be sustained remains to be seen given that there is so much work to be done over the course of this year in determining the nature of the eventual Brexit deal.”
Additionally, index of buyer demand went up to +17% in December, from -5% in November.
Rubinsohn continued, “Given that affordability remains a key issue in many parts of the country, the shift in the mood-music on prices is a concern, with even London expectations pointing to a reversal of course both over the coming months and looking further out. This highlights the critical importance of the government addressing the challenge around housing supply.”
Surveyors said, “The election result saved 50% of our sales,” and “The election result has given much-needed confidence to buyers and we have seen an increase in activity and commitment.”