The house price growth in the UK over the next five years is expected to be 2½%, according to a latest report from global real estate services firm JLL.
“A range of factors are colluding to deliver more moderate UK house price growth over the next five to ten years. However, and despite the intrusion of Brexit, we believe this transition will provide a more stable and healthy UK housing market,” JLL said in its latest report.
UK transactions will improve modestly, averaging 1.23m pa over the next 5 years while the housing starts are likely to remain buoyant averaging 206k pa over the next 5 years.
Across Greater London, affordability will be the overriding factor. The Bank of Mum & Dad will continue to assist while a strong economy, especially post-2019, will drive housing demand and push up activity.
In Central London, JLL expects demand for new developments to remain steady over the next two years until the Brexit road becomes clearer. A bedrock of demand will continue from domestic owner-occupiers supported by a steady stream of international buyers and investors.
JLL’s forecasts are more modest than in previous years. That said, JLL sees upside potential in London as it continues to be attractive to both international and domestic purchasers.
Adam Challis, head of residential research at JLL concludes: "The period of great capital boosts to the housing market is ending and adjustments will need to be made. Digital construction - that is to say, a combination of Building Information Modelling, Off-Site Construction techniques, and active management of lifecycle costs to generate customer and business intelligence - will play a role.