THE Oxfordshire residential property market will have a ‘positive bounce’ following the general election, an expert has predicted.
Gavin West, managing director of Summertown based West-The Property Consultancy, said the market in the county will gain in confidence.
He said: “No matter what your politics, the instability created by the years since the EU referendum has impacted on the nation.
“The property market is a barometer for how the nation feels about their future and many people have been putting plans on hold.
“I am predicting a positive bounce for the Oxfordshire residential property market and possibly as soon as post-Christmas.
“This won’t mean quick capital appreciation on property values, but it will see a return to people making ‘life’ decisions.
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“It could potentially see a return to trading volumes not seen since pre 2015.”
Last month Land Registry figures revealed house prices in Oxfordshire had experienced an 1.8 per cent annual decline but a return to confidence in the housing market could mean prices starting to rise significantly again.
The average house price in Oxford in September was £418,410, representing a 2.5 per cent increase on the previous month. The data showed Oxford performed better than the rest the UK. Owners of detached houses saw the biggest improvement in property prices in Oxford in September – they increased 2.8 per cent, to £829,234 on average– but over the last year, prices dropped by 1.7 per cent.
First-time buyers in the city spent an average of £ 371,300 on their property – £8,000 less than a year ago, and £52,500 more than in September 2014.
Buyers paid 27.1 per cent more than the average price in the South East (£329,000) in September for a property in Oxford.
“It’s a resilient market, especially within the city’s ring road, where it’s essentially an international marketplace with a large student population,” said Mr West.
“Now we have some improved certainty I predict there to be further growth as people take positive decisions. We have already experienced an increase in inquiries, which is an early indication of growing confidence.”
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He added: “My team and I at West-The Property Consultancy are looking forward to some positive growth in 2020 and even as at today, people who were putting off decisions have committed to now moving forward in the coming year. This already signals the start of the expected reaction from those we’d identify as ‘pent up demand’.”
Prime Minister Boris Johnson has renewed his vow to take Britain out of the European Union on January 31 and the landslide win could mean there will be more stability in the housing market, with home owners set to benefit from the result.
Property experts now expect those who have been holding off to go back to doing deals potentially driving house prices up. Andrew Montlake, managing director of mortgage broker Coreco, told inews: “Expect a sharp uplift in transaction levels starting early in 2020, as buyers and sellers who have played it safe put their plans into motion.
He added that a ‘huge amount’ of pent-up demand could be unleashed on the market in the new year. He added: “Although a lot of the hard work around Brexit has yet to be done, there is now a political stability that will give a lot of people the confidence to get on with their lives.”
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His views were backed by former residential chairman of the Royal Institution of Chartered Surveyors, Jeremy Leaf, who said: “The most important thing for the housing market is that the result brings some stability, albeit short-term at least until we see a clearer timetable for Brexit.
"This should generate a return of confidence to the market, which is what we have been looking for.”
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It remains unclear what will happen when the transition period finishes at the end of next year, or what the long-term impact of Brexit will be on the UK economy.
Jonathan Samuels, CEO of the property lender, Octane Capital, said: “Price growth in 2020 is likely to be a lot more robust than in recent years.”
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