While the experienced team of estate agents here at Letters Group don’t have a crystal ball to see what will happen in 2020, we do have experience. We know what affects house prices and how different factors affect house prices in Peterborough for better and for worse.
In this blog post we would like to share with you the things that we think will affect Peterborough house prices in 2020;
While the election result has been completed, nothing is currently set in stone. We do not know that the UK will leave the European Union at the end of January 2020. This means that lots of movement in the house market is expected until this time. Even if Brexit does go ahead, we still expect some economic volatility during the progression of trade talks.
We expect that there will be a holding pattern in the house market, until February’s budget. Experts predict that the government could introduce a stamp duty surcharge to overseas house buyers in this budget. It is also expected that we will see reforms for first-time buyers and landlords in this budget too. For this reason the house market may not kick into action until the early spring of 2020.
Supply and Demand
If Brexit goes ahead we could see a vast increase of houses on the market and transaction numbers will increase. This could be a good thing for house buyers in Peterborough looking for a bargain as it would then be unlikely for house prices to rise, but instead lower. Even if buyer confidence returns in the UK it is likely to remain a very price-sensitive market. It is likely that overpriced homes will be left languishing in the home listings.
Base Rate and Mortgage Market
The Bank of England base rate could shift entirely either way in 2020. This is purely dependent on what happens in the wide economy. It is a good time to get a mortgage as a first time buyer, home-mover or landlord at the moment. However, attractive rates and stiff competition will need to continue in 2020 to kick the house market back into gear.
If you are looking for professional estate agents in Peterborough to help sell or buy your next home, call us. We would be happy to help.