UK Housing Market gets a boost from election: RICS; BoE rate decision eyed


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UK Housing Market gets a boost from election: RICS; BoE rate decision eyed

UK Housing market picked up robustly last month following a decisive victory for the UK PM Boris Johnson that smoothened up Britain’s divorce from the EU, a survey conducted by a London-based professional body RICS or Royal Institute of Chartered Surveyors had revealed on Thursday, the 16th of January 2020, suggesting another notable leitmotif for the Bank of England (BoE) as it was mulling an option to slash interest rate as early as this month.

On top of that, according to the RICS survey result released on Thursday (January 16th), existing home sales rose for the first time since May last year, while future home sales expectation had also climbed higher. More surprisingly, an indicator of new buyer inquiries had spiked to its highest level since 2016’s UK election following a landslide victory for the Tories that for better or worse cemented Britain’s way towards a Brexit.

Meanwhile, sketching a cautious outlook over UK housing market which remained utterly stagnant since the introduction of Brexit bill earlier last year by then-PM Theresa May, RICS Chief Economist Simon Rubinsohn said on Thursday (January 16th), “However, the sales expectations indicators clearly point to the prospect of more upbeat trend in transactions,” adding it remained to be seen whether the trend persisted given the uncertainty UK housing market could witness if Britain could not strike a trade deal with EU Commission by end-2020.