House sales to bounce as buyer confidence improves
House sales in UK cities are expected to jump this year as buyer confidence improves due to greater political certainty, according to the latest research.
Buyer demand across UK cities in the first few weeks of 2020 was 26 per cent higher than in the same four week period last year and in 2018.
London is expected to benefit from the boost to buyer confidence, however house prices are likely to remain subdued, according to the latest house price index by property platform Zoopla.
The average house price in the capital was up 1.9 per cent annually in December, rising to £480,800, and London is ranked 16th out of all UK cities for growth prospects this year.
Zoopla research and insight director Richard Donnell said: “Whilst the first few weeks of the year always see a return of home buyers to the housing market, demand for housing at the start of 2020 is 26 per cent higher than over the last two years.
“This is partially due to fading political uncertainty; households who were holding off moving are now starting to return to the market and this momentum has been supported by low mortgage rates.
“The cities with more affordable house prices… have seen the greatest increase in buyer demand as house hunters continue to focus on value for money this year.”
Meanwhile, house price growth across UK cities hit a two year high of 3.9 per cent in December, driven by regional locations such as Nottingham, Edinburgh and Glasgow.
Donnell added: “Regional cities continue to lead the way for house price inflation this year thanks to continued economic growth and more attractive affordability of housing”.