UK house prices are expected to see a two per cent jump next year following the Conservative Party’s election victory.
Prices will benefit from greater home-mover confidence, which has been weakened by political uncertainty since the 2016 EU referendum. However the latest research suggests the housing market will only return to full health when “Brexit is well in the past”.
The two per cent jump is more than double the current annual rate of 0.8 per cent.
House prices in the south of England will rise by around one per cent, while more northern regions will see a boost of between two per cent and four per cent.
Demand for property has remained resilient and is outstripping supply, according to the latest research by Rightmove.
The number of sales agreed so far this year were down three per cent on 2018, while the number of properties coming to market was down eight per cent.
Miles Shipside, Rightmove director and housing market analyst said: “The greater certainty afforded by a majority government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand.
“Given the Brexit track record to date, further political twists and turns should not be ruled out, though with a large majority there is a higher possibility of an end to the series of Brexit deadlines, and the prospect of an orderly resolution.”
He added: “With much of the political uncertainty removed, we expect that the number of properties for sale will recover as more new sellers come to market, making up some of this year’s lost ground.”