Election bounce sends price of a house rocketing £7k a month

Marco Green
January 22, 2020

Its latest house price index shows a huge post-election bounce for the United Kingdom property market, with average prices rising by £6,785 over the month.

Asking prices for United Kingdom houses rose at their fastest pace on record for the month in January, according to Rightmove, with sentiment boosted by the outcome of the general election.

The property listing site also said more than 1.3 million aspiring buyers had made enquiries to estate agents since the election on 12 December, 15% more than a year ago.

This led to a 7.4% increase in the number of sales agreed over the same period.

He said: "The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the European Union referendum caused some potential home movers to hesitate".

The figure is based on nearly 65,000 properties marketed between December 8 and january 11 - so the vast majority were after the result of the General Election was known.

Marc von Grundherr, director of Benham and Reeves, commented: "The coal that fills the furnace of the United Kingdom property market is very much market sentiment and it doesn't matter what your stance is on Boris or the election result, even the slightest inkling of returning market stability has been enough to reignite the fires both where buyer and seller activity are concerned. Some buyers have snapped up a property already, with the number of sales agreed up 7.4 per cent on a year ago".

Rightmove said: "It would appear that many of these new sellers are feeling a surge of optimism".

Official data for November showed a 2.2% rise in house prices across Britain, the largest increase in a year.

"However, it is still a price-sensitive market, with stretched buyer affordability, so sellers should be careful not to get carried away with their pricing and miss out on this window of increased activity".

Across Britain, the average asking price now stands at £306,810 - up from £300,025 in December.

"One factor behind the upwards price pressure has been the shortage of property coming to market, with 2019 numbers down by 19% on 2018 and some would-be sellers postponing their moves until they judge the outlook to be more certain".

Rightmove also quoted the views of estate agents.

Mark Manning, managing director of Yorkshire-based Manning Stainton, said: "The signs are there that the new year is starting very quickly and we've come out of the blocks with quite a bit of life".

Marc von Grundherr, a director at Benham and Reeves in London, said: "We have absolutely seen a post-election bounce, quite substantially actually".

"People have been waiting for stability, and the moment it arrived, confidence in the market has increased significantly".

Other reports by Click Lancashire

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