Associate Solicitor Manisha Bhula, head of our Residential Property team, looks at the firm's survey results and estate agents' predictions for the Thames Valley's housing market in 2020 and 2021.
A survey conducted by Blandy & Blandy has shown that estate agents in the region, which have begun to reopen their offices following the Government’s updated guidance, believe that the housing market will recover strongly by early 2021.
We surveyed 26 estate agents covering the Thames Valley and found that while only 42% of estate agents expected that property prices in the next six months will rise or remain unaffected, with 58% predicting a fall, 71% of estate agents felt that prices would either hold firm or increase in the next 12 months.
Estate agents felt strongly that market activity would remain affected in the short-term, with 78% anticipating a fall in the number of property moves taking place and just 22% forecasting an improved or unchanged position. However, 79% predicted that the number of transactions taking place would increase or return to normal levels within the next 12 months.
Following the Government’s latest guidance which also confirmed that building sites could reopen, with measures in place, 88% of estate agents expected that the number of new build homes coming onto the market in the next 12 months will rise or remain unaffected.
The Centre for Economics and Business Research recently predicted that nationally property prices could fall by 13% in 2020, as uncertainty and economic factors have an effect on both supply and demand, but other leading research has suggested a far lesser impact. This month, the Office for National Statistics (ONS) temporarily suspended its UK house price index due to inactivity and therefore a reduction in market data.
I believe that there are grounds for cautious optimism though. The Thames Valley region remains a fast-growing economic area with a typically buoyant job market. These factors, coupled with fantastic infrastructure and amenities, means that we would expect to see a quicker and stronger recovery here than perhaps in certain other areas of UK.
We are fortunate to enjoy excellent relationships with leading estate agents in the area and we look forward to working close with them to ensure that our mutual clients’ moves happen as smoothly as possible in the months ahead.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
