Jane McGowan takes a look back at 2019’s property market.
No one can say 2019 has been boring.
Yes, the debate over the B-word rumbles on – the country is now in the hands of the third prime minister in three years and gearing up for another General Election. And while all this bluff and blunder may be a bonus for headline writers and social media commentators, its impact on the housing sector is not quite as helpful.
In terms of the overall market, 2019 has been a bit of a mixed bag. The summer brought relatively good news as The Halifax reported that in the three months to September, house prices across the UK increased by 0.4%, up slightly from 0.1% in the three months to August. But with the onset of autumn, a decidedly chilly spell was sweeping the country.
According to property site Rightmove, October saw the slowest monthly rise in prices since 2008, managing a paltry 0.6%.
Traditionally one of the stronger selling months – as people set their sights on a new home for Christmas – experts were now stating that continued uncertainty over Brexit and future economic surety were taking their toll.
Industry website Propertywire reported in September that new enquiries to estate agents also dropped to -15%, although it did say that many agents were optimistic that sales would rise over the coming 12 months.
Interestingly, London appears to be hardest hit with prices in May down 4.4% year-on-year. And while sales figures in the capital and the South East have continued to fall over the year, the areas remain the most expensive places in the UK to purchase a home, achieving an average of £473,000 and £326,000 respectively.
However, Vari Bowling, partner at Patrick Gardner Residential says that while the industry may be going through an “interesting time”, the picture is not all doom and gloom.
“Yes, Brexit is having an effect, but a lot of people now seem to be adopting a ‘life goes on attitude’ – sometimes you just have to move house, whether it’s to buy a family home or to downsize.”
The year has provided some good news for developers, however, as figures from the Land Registry in June revealed that take-up on new builds was up 25%. Experts credit the spike to environmentally-conscious millennials who are opting for a low-maintenance home that offers not only cleaner, greener build technologies but more energy-efficient heating and lighting systems.
“We have had a few developments which have done really well,” says Vari, citing Runnymede Homes’ White Horse Mews in Dorking. The collection of nine, high-spec dwellings are situated just off Dene Street and is ideally placed to make the most of the town’s shops and restaurants. Vari says the mix of three and four-bedroom homes, which are priced between £795,000 and £945,000, have, “proved very popular with buyers. Seven have already been sold, we are negotiating on two which means there is only one left,” she reveals.
Vari says that in Surrey there is still a high demand for good houses in good town centres, with buyers looking for an easy commute with great retail and leisure facilities.
In terms of the rental market, figures from the ONS (Office of National Statistics) show private landlords fared a little better, as average rents in London rose 0.9% in the 12 months to May 2019, up from 0.5% in April 2019. The upswell marks its highest growth rate since 2017. Monthly room rents in the South East range from £350 in Runnymede to £600 in Elmbridge and the market remains relatively buoyant.
“Property may no longer be the quick money maker it was, but there is still scope for investment growth over the mid to longer term,” Vari concludes.
“What has changed over the past few years is the number of times people are prepared to move which is down to the cost. The recent changes to the Stamp Duty rates have had an impact. But we believe confidence in the market will return and are very positive about 2020.”
