2019 house price prediction: Rightmove forecasts overall flat prices of 0%
- National average asking price of property coming to market forecast to remain flat at 0% in 2019
- Prediction is based on the current sound fundamentals of the housing market continuing, but an increase in political or economic uncertainty would have a detrimental effect
- Parts of the more buoyant northern half of the UK set to rise by 2% to 4%, though this will be off-set by new sellers adjusting their prices downwards in parts of the south:
- London commuter-belt regions predicted to fall by around 2%
- Greater London predicted to slow its current annual rate of decrease from -2.4% to an average fall of -1%
Miles Shipside, Rightmove director and housing market analyst comments: “While buyer affordability is stretched in some parts of the UK due to house price rises having outstripped wage rises, the underlying fundamentals supporting the housing market are currently sound. Positive employment data and affordable mortgage interest rates at high loan-to-value ratios are key to keeping property prices broadly in line with current levels. Buyer sentiment has been helped by recent interest rate rises not being fully passed on, which may continue to be the case with any future base rate rises as long as healthy competition remains among lenders keen for new business. The Mortgage Market Review established in 2013 has also been a limiting factor on excessive property price increases by prudently restricting buyers’ borrowing power.
“Since the property market’s recovery from the 2008 financial crisis, many parts of the northern-half of the UK have seen marginal or relatively modest price increases. We predict that these areas will continue to see price rises, though tempered by affordability constraints. In contrast, regions in and around the influence of London saw prices go up in a five-year period by an average of around 40%. Consequently, we forecast that these previously booming areas will continue to see modest downward price re-adjustments in 2019.
“Agents in some locations are reporting that home movers are being negatively influenced by the ongoing political uncertainty, and a more certain outlook would obviously assist market sentiment. Whilst uncertainty traditionally deters some discretionary movers, particularly at the high end of the market, there are many would-be buyers and sellers who will be getting on with their lives and will be keeping the market moving.”
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