The Boris Bounce
The Boris Bounce
With Boris holding firm in the election and gaining a Conservative majority, expectations across the property market have grown.
Experts claim more certainty after Tory election win will increase buyer demand and property values will grow at over double the growth seen in 2019 (0.7%). Combine this with a burst of confidence and more certainty after the Tory election win, predictions are that it will unleash pent-up buyer demand in the first months of 2020. But ongoing political uncertainty makes a dramatic annual rise in values unlikely – experts are expecting growth to hit around the 2% mark.
Economists said the latest figures echoed reports from property website Rightmove of a 28pc surge in buyer enquiries in the four days after the election and signs of a "Boris Bounce" in house prices emerged after the best month for the property market since 2007.
Rightmove also announced in their latest House Price Index their forecast for the housing market in 2020. The headline figure was a 2% rise in house prices across 2020 as consumer confidence returns to the market following the general election.
For Life Tenancies, this doesn’t particularly impact the investments – positively or negatively. Life Tenancies are medium to long term investments so any short-term bounce will affect them minimally.
Being able to ride the highs and lows of the market like this make our investments particularly attractive. Combined with the little work required (if any) to maintain one of these investments, as you can imagine, they are in demand.
The real story here is not of house prices in 2020 – because some await their rise just as an equal number of people look forward to their demise – but rather whether renewed confidence and policy adjustment in the year ahead can equally resurge and rebalance the housing market towards buyers, sellers and the economy at large.