The annual price growth of housing in the UK is likely to end at 5 per cent this year, according to UK Residential Market Research Forecast report by Knight Frank. Both the London and wider UK housing markets have outperformed expectations following the EU Referendum, the research found out.
While the price growth in 2017 is expected to be slower, it may not remain the same, as the fundamentals of the UK housing market is likely to remain unchanged. Overall, the UK house process between 2017 and 2021 are forecast to rise by 14.2% cumulatively.
The prime London market continues to offer attractive returns to investors, especially overseas home buyers, who are taking advantage of the fall in sterling. Meanwhile, the demand for rental properties is likely to continue in view of poor supply of homes. The demand for rental properties from Central London in particular was high this year.
The housing stock is likely to increase marginally as a section of the landlords, in view of the higher holding costs, is likely to dispose their second homes to buyers next year.
Both the London and wider UK housing markets outperformed expectations following the referendum. After a sharp dip in confidence just after the vote, conditions have improved into the autumn