Zoopla sales volumes expected to stay at 1M but prices to grow 3% in 2020

Zoopla sales volumes to stay at 1 million during the next year while house prices are expected to grow 3%.

The portal has released forecasts for 2020, claiming the most affordable regional cities will see house price growth of 4%, whereas London will lag with 2%.

Zoopla’s predictions are slightly higher than those made by others in the sector.

In contrast, Savills and JLL are forecasting just a 1% rise, Halifax has gone for 1.3%, the RICS and Knight Frank predict 2% growth, while Strutt & Parker has gone for a more ambitious 4%.

Rightmove has predicted a 2% increase in asking prices.

Zoopla said:

“For estate agents, developers and businesses operating in housing, sales volumes are more important than house price growth.

“At a national level, housing sales have drifted lower over the last three years but remain just over 1 million a year.

“A 25% drop in sales in London since 2014 has created scarcity and is supporting the increase in price growth. We expect volumes to increase in London while house price rises remain muted. At a national level we expect housing sales to remain at 1 million over 2020.”

Zoopla said the election result brings more certainty to households and could release pent-up demand, but warned that affordability remained an issue that could hold back demand and suggested Stamp Duty reform could provide a short-term boost to market activity and prices.

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