West Midlands Buyers - Will The Boris Bounce Help You?
Understandably, given the nature of the victory, and the hope that political stability will help strengthen the property market, there have been many people celebrating the perceived Boris Bounce since the General Election of 2019. Various industry experts and trusted sources say house prices are rising and there is an increase in the number of potential buyers.
When you take the wealth of statistics on board, you have to say there has been a positive impact on the housing market. Even the Bank of England has cited the Boris Bounce in their decision to hold interest rates at 0.75%. The Your Move Index for the year said prices in the West Midlands increased by 3.3% annually to 226,833 pounds. However, there was a slight dip in the month on month figures of 0.2%.
There is optimism amongst leading property organisations
The Chief Commercial Officer at Zoopla, 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."
He continued by talking about how the market has been stifled in recent times, and many people have viewed the change in market outlook as being akin to a dam bursting. Andy Marshall said; "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."
Buyers feel positive again
However, when it comes to buyers in the UK housing market, the most impressive factor is the positivity and optimism surrounding the market. Brexit and the March Budget are still likely to impact the market, but with perceived political stability and clarity, buyers are showing greater interest in finding a home.
Of note to people operating in the West Midlands property market, and which may help buyers, is the decision made by the West Midlands Combined Authority, the WMCA. They have redefined "affordable housing" to refer to rent or mortgages, which cost less than 35% of the lowest quarter of wage earners in the local area. This is a significant change from the most common definition, which is 80% of the market value.
Andy Street is the Mayor of the West Midlands and the chair of the WMCA. He said; "In recent years would-be homeowners have been forced to stand by and watch as house prices outstrip wages. The current 'affordability' definition is 80% of market value, which for many people in the West Midlands still leaves homes frustratingly out of reach."
If you are looking to make a move in the West Midlands property market, call on the services of a local agent who is here to help. At Innovate Estate Agents, we have helped many buyers find their ideal home, and we are pleased to welcome new buyers for 2020. If you believe this is the year you can step on the property ladder, or move upwards, please get in touch, and we will be more than happy to assist you.