U.K. housing market sees bounce after election

The U.K. housing market perked up in December as Boris Johnson’s commanding election win helped push up sales and expectations for price gains.

The number of agreed sales edged up for the first time since May, led by a marked increase in London, while near-term price expectations improved, according to a report by the Royal Institution of Chartered Surveyors published Thursday. A headline index jumped to the highest since June.

The survey is the latest to indicate that the housing market, and U.K. economy as a whole, got a boost from the end of political deadlock after the election. That may give Bank of England officials, who have indicated they are watching the data closely to see if the U.K. needs rate cuts, pause for thought before the January meeting.

“The housing market is seeing some benefit from the greater clarity provided by the decisive election outcome,” said RICS Chief Economist Simon Rubinsohn. “The sales expectations indicators clearly point to the prospect of more upbeat trend in transactions emerging with potential purchasers being more comfortable in following through.”

National Mortgage News
January 17, 2020

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