Is the ‘Boris bounce’ here to stay for the UK property market?

 

New research has revealed that we’re in the midst of a three-year high in confidence levels for the country’s housing sector.

While 2019 saw a levelling off of property transactions and house prices as many adopted a wait and see approach through the political uncertainty, things have certainly turned around as we move forwards into 2020.

In a survey commissioned by property portal Zoopla, which collected responses from 650 agents and 6,000 people, there was a clear indication that property confidence was on the up, and in fact was higher than it has been for the past three years.

Confidence in the north

The north of England seems to be generating the greatest mood for optimism among agents with 57% stating that 2020 has begun in the most confident way for several years. Meanwhile, 55% of agents based in the south commented that they were feeling ‘very confident’ or ‘somewhat confident’ about how the market would perform during the year ahead.

From agents surveyed, 52% anticipate that over the next year and a half the amount of available properties is set to rise, amounting to a net increase of 20% since 2017. Almost half (45%) of agents also expect the rate of property transactions to increase during 2020.

Zoopla’s chief commercial officer, Andy Marshall, said: “It comes as little surprise that the so-called ‘Boris Bounce’ has already started to reshape the market in the immediate term – particularly amidst reports of improving consumer confidence following the decisive election outcome.”

Broader business services

The survey highlighted that agents recognise an ongoing necessity to broaden their business model, such as joining forces with third parties to offer clients financial and legal services: 43% of agents believe that there is scope to increase earnings by recommending mortgage lenders or brokers and 42% by recommending legal services.

During 2020, 54% of agents anticipate a jump in property management fees will generate more revenue, 50% from property sales and 45% from lettings fees.

Andy Marshall commented: “The annual State of the Property Nation findings always make for a compelling insight into all facets of the market. In the first of our series of takeaways, the study provides a barometer of agent mindset, and our findings show, on the whole, that agent confidence in the market is on the up for 2020.”

“Without doubt, appetite to buy and sell property has been pent up since the aftermath of the Brexit vote in 2016, and it would now appear that we have the green shoots of a new cycle in the market. While we don’t expect runaway prices – indeed we have forecast a modest 3% growth for 2020 – we are definitely heading in the right direction and agents are rightly benefiting from what we hope will become a new dawn.”

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Is the ‘Boris bounce’ here to stay for the UK property market?

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