2020: What’s in Store for the Housing Market?
We are now officially in the next decade, with many looking for smart ways to invest their capital. Property one of many investment vehicles for individuals looking to grow their wealth. But what’s on the cards for the housing market in 2020?
House prices shrugged off Brexit uncertainty to end 2019 1.4% higher than at the start of the year, according to Nationwide building society. One statistic to note is that Scotland ranked the strongest performer in property price growth 2019, up 2.8% in the fourth quarter alone. The critical question is: can we rely on this trend of slow growth continuing into 2020?
Many key factors are supporting the housing market growth, such as strong employment, low mortgage rates and a lack of supply. Even in the face of considerable economic and political uncertainty, we have seen slow growth in the property market.
One sector of the market has seen steady growth: first-time buyers. The number of people who took their first step on the property ladder last year is estimated to have reached its highest levels since 2007. For individuals looking to invest in the property market, this could be a target market. Identifying areas local to where you live that are popular with young professionals, where you can buy properties that need a degree of renovation and style them to attract first time buyers.
Although the end of 2019’s property transactions helped show growth in the market, the number of transactions in 2019 was down in comparison to 2018. Brexit certainly will have put many individuals off selling their properties, so only time will tell whether this will inject some life into the market in 2020.
With the next Brexit deadline looming on 31st January, some are expecting a sluggish January. It will be a case of watching and waiting for many.
Despite the uncertainty and slow growth, it’s still an excellent time to get into the property market as an investor. So long as you buy right, you will be in a strong position to do well in the property market.
If you’d like to get into property investing but don’t have the time or knowledge, book a call with me using the button below to discuss how I could help you on your journey.
