House price prediction: September to see biggest rise in a year
September will see the largest annual increases in house prices for nearly a year, according to Reallymoving.
The home move services site predicted that annual growth in house prices in England and Wales will reach 3.1% in September and 2.8% in October, the highest level seen since November 2018.
It puts the increase down to buyers racing to complete deals before the Brexit deadline of 31 October but suggested stability in the longer term too.
The business said that ‘underlying conditions in the broader economy continue to underpin the housing market and support year on year price growth’, particularly high employment levels, low interest rates and rising household incomes.
How does it know?
As homebuyers register for quotes for home move services on the site typically 12 weeks before their purchase completes, reallymoving claims it is able to provide an accurate three-month property price forecast based on the purchase price agreed.
And it reckons that, historically, its data has closely tracked the Land Registry’s Price Paid data.
Rob Houghton, CEO of reallymoving, said: “The outlook for the property market over the next three months is remarkably positive, considering the current political and economic context.
“The recent election of a new Prime Minister who is committed to leaving the EU on Halloween even if a deal isn’t reached could mean clouds are gathering on the horizon, but any impact on prices in the short term is likely to be mitigated by the urgency of home movers to complete deals in the next three months.
“While the longer term outlook remains uncertain, we could see a Boris Bounce in the property market if he is true to his word over stamp duty reform and stimulates the market through tax cuts at the top and bottom.
“Scrapping stamp duty for downsizers could be a cost-effective way to stimulate activity throughout the market, freeing up family homes and enabling chains of transactions, at relatively little cost.”