Pleasing property news for Bishop's Stortford home-owners despite Brexit dip
Buoyant property prices in Bishop's Stortford are being predicted, despite "Brexit and election-related angst" dragging the market down in the short term.
Justin Godfrey, who leads the residential team at Savills Bishop's Stortford, said: "Over the last 10 years or so the East of England has experienced consistently strong house price growth that has been on par with or in excess of the national average, so it's perhaps no surprise that we are now predicting a slight slowdown in the market. However, I would expect there to be significant variations across the region.
"We are fortunate to live in a very sought after area – with great connectivity and superb schools that offers excellent value for money when compared to London. Even this year in the face of considerable political and economic uncertainty there has been strong demand from motivated buyers.
"Properties in Bishop's Stortford town centre – close to the railway station and within easy reach of shops and restaurants – have proved particularly popular, as have those in well-regarded towns and villages such as Much Hadham, Braughing, Clavering, Stansted and Hertford."
Savills is forecasting a price increase across the UK of 15.3% from 2020-2024, with significant regional variation. Growth will range from 24% in the North West to 11% in the East and South East.
The agent expects transactions countrywide to remain steady at around 1.2m, with cash buyers around a third of the market and first-time buyers set to slip back slightly when Help to Buy is withdrawn.
The 10.9% rise in the East of England will see the average house price increase from £291,000 this year to £323,000 by 2024.
Savills conclusions are mirrored by the monthly RICS UK Residential Market Survey. It continues to show a subdued housing sales market in the East of England with a lack of newly-agreed sales and new buyer enquiries. However, 34% of the region's agents expect prices to increase over the coming 12 months, indicating a possible pick-up in the market post-election.
During October, 56% of agents in the region reported a fall in new buyer enquiries, the lowest reading in the UK. Newly agreed sales remained negative for the fourth month in a row.
Looking ahead, 19% of agents in the region expect to see sales increase over the coming three months, up from 9% in September.
Simon Rubinsohn, RICS chief economist, said: "The latest survey feedback continues to suggest that both buyer and seller activity remains in a holding pattern, hampered by political and economic uncertainty. Given the upcoming general election next month, it appears unlikely that these trends will pick-up to any meaningful extent over the remainder of this year. The picture remains very different on the lettings side however, with tenant demand gathering momentum over recent months. This is running against an increasingly tight supply backdrop for rental properties and seems set to squeeze the pace of rental growth higher going forward."