Halifax, part of Lloyds Banking Group, reckons house prices will grow between 1% and 3% in 2020. The UK’s biggest mortgage lender says that in 2019 the housing market performed in line with expectations, at the lower end of its forecast for 2% to 4% growth.
Russell Galley, managing director of Halifax, said: “The housing market in 2019 followed a similar path to recent years. Modest price growth was supported by falling mortgage rates and a low volume of houses for sale, factors which can in part be attributed to elevated uncertainty. This helped to underpin a degree of resilience in the market.
“Prospects for 2020 look a bit brighter, with uncertainty in the economy falling back somewhat, transactions volumes anticipated to pick up and further price increases made possible by growth in households’ real incomes. However the shortage of homes for sale and low levels of housebuilding will continue to support high prices, while the challenges faced by prospective buyers in raising the necessary deposits may continue to constrain demand”.