Savills have recently stated that they believe the housing market have been positively effected by the ‘Boris Bounce’.
They stated to the Guardian that since the election in December 209, there has been an increase in house sales.
Savills, a worldwide estate agents, sells and manages both commercial and residential property. They told analysts and investors that there 2019 profits and sales would be at the “upper end of the board’s expectations”. From an end of year stock market update, it can be seen that in 2019, shares were 7% higher for the company.
Within their stock market update, they commented on how within British homes, they were outperforming the overall market conditions. Also, it stated how they have taken shares particularly in core London areas.
The agency, found within 1855, expressed how sales in the UK and US were so strong that it offset depressed sales from other areas such as Hong Kong.
What do other estate agents think?
There are also other estate agents who are commenting on the positives from the ‘Boris Bounce’. Apparently, this has had a particular increase on the super luxury and expensive properties.
According to a senior analyst at Savills, after the election, they sold a few ultra-luxurious properties.
After the election, a US client bought a £50 million pound property in Chelsea and a European family bought a £65m house in London. Also, it was recorded that a property tycoon from China has bought a 45 roomed mansion looking over Hyde Park; it cost over £200m and makes it the most expensive property to ever be sold in the UK.
Why are luxury properties being bought? Well, banks are offering low interest mortgages to those with super expensive mortgages. Since September 2019, over 180 £15m plus mortgages have been taken out.
The Guardian also commented how last month, experts predicted a ‘short-term uptick’; due to foreign investors moving to buy property before the pound rises.
What is the Boris Bounce?
Back in December 2019, Boris Johnson was elected to lead the UK Government. When he came into power, many commented on a ‘Boris Bounce’. This being the population gaining confidence in Johnson and therefore deciding to act.
Overall, the housing market has been effected by the uncertainty of Brexit and homeowners not having confidence with the government. However, now that a Prime Minister has been selected for the next five years, the population is starting to gain confidence. When Johnson was elected, the pound saw an increase in value, as well as the housing market experiencing a boost.
What will the 2020 Housing Market see?
Many journalists like to comment on how the market may change. But, it is hard to see how estimations may become reality, especially when certain journalists contradict others.
However, with the country now having an increase of confidence within the government, we suspect that there will be a slow increase in the overall housing market.
Plus, with it now being the new year and we slowly creep towards Spring which has always been known as the successful season to sell and buy property.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.