House Price Growth in Britain to Remain Weak in 2020 Over Reigning Brexit Uncertainties
A recent survey by RICS reveals that house prices in Britain are expected to increase by about 2% in 2020 as Brexit uncertainties are likely to continue weighing on the real estate market. Britain’s housing market has suffered in the wake of the Brexit referendum in 2016 and by a hike in property purchase taxes.
Even though markets had initially cheered the victory for PM Boris Johnson and his Conservative Party in the recent elections, Brexit uncertainty is likely to remain in focus at least until the transition period ends on December 31, 2020. The full impact of Britain’s departure from the EU will only be felt in 2021, and any possibility of stabilization can also be experienced after this.
Economists polled has anticipated a rise in house prices by around 1.5% in Britain. Meanwhile, official data from the ONS reveals a 0.7% increase YoY in house prices during October. This was the slowest pace of growth in house prices seen in over seven years.
The outlook for increase in rents is slightly better, with RICS forecasting rents to climb higher by 2.5% across Britain and by 3% in London. Overall sales volume, however, is expected to remain mostly flat into 2020.
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