What effect has the Boris Bounce had on the property market?

What effect has the Boris Bounce had on the property market?

19 February 2020

Property experts Jason Bunnings and Aldo Sotgiu discuss everything from the Boris Bounce and its effect on the residential property market, to what you should consider when you put your home on the market. But what are their predictions for property prices for the year ahead? Watch this short video to find out.

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At a glance

  • While the number of new buyers fell by around 8.5%, sales were strong in the 2nd half of the year, increasing by 7.95% compared to the 2nd half of 2018.
  • Prices peaked in December at £324,000 suggesting that there was a ‘Boris Bounce’ which resulted in an unexpected Christmas present for us all.
  • There was an uplift of 1.2% in New Instructions in Quarter 4 against Quarter 3.
  • At just under £316,000 we saw an increase of 1.3% compared to the first 1st half of 2019.
  • Rightmove suggests there will be a 2% rise in 2020.

 

Aldo Sotgiu - Managing Director of Operations

"It seems both sides are breathing a sigh of relief now we’ve crossed the Brexit line. Despite many hurdles ahead a clear path appears to have bought a degree of confidence back to the housing market.

From Arun’s records, house prices managed to shrug off the uncertainty around Brexit and we recorded a rise in the average house price during the second half of 2019. It was interesting to note that while overall buyer demand dropped, those customers that were registering were more serious about finding a property, which was evidenced in improved sales activity, particularly in Quarter 4. This also suggests that there was some pent-up demand from buyers pre-Brexit.

Prices peaked in December at £324,000 suggesting that there was a ‘Boris Bounce’ which resulted in an unexpected Christmas present for us all. Our findings also mirrored the Nationwide Building Society statistics: After ten relatively stagnant months, prices rose strongly in November and December.

Some areas in the South East showed a strong increase in sale prices in the second half of 2019, with an uplift of 2.16% compared to the first six months. We were anticipating a reduction in customers over the same period and were pleasantly surprised.

It’s reasonable to assume that the Kent market is an attractive proposition due to overall lower house prices, which better accommodates First Time Buyers.

In other news, we’re very pleased to see a growth in market share for both New Instructions and Sales with 12.3% of New Instructions in Quarter 4, an uplift of 1.2% against Quarter 3.

As we enter 2020, we’re in a good position with more properties available to meet the higher demand. The early signs for the New Year look very promising with increasing new buyer activity."

 

Contact us

As you can see there’s lots of change over the last period and it’s likely to continue throughout the year.

Get in touch and see how we can help you move forwards.

Want to learn more about the current state of the housing market? You can download the full report below:

Download the full biannual report here