Global real estate services provider Savills expects transaction volumes in the UK residential property market to be reasonably stable over the next five years.
“Assuming some clarity is reached around Brexit; When that clarity comes, it may generate a resurgence in demand and activity,” Savills said in its latest ‘UK Housing Market Update’ with a Brexit deal expected to be signed in 2019.
The average house price growth in 2018 is estimated at 1.4 per cent with a modest rise of 0.3 per cent in November, according to Nationwide, the UK’s leading building society. Savills had forecast a 1 per cent rise in the UK house prices in 2018, but Nationwide’s findings reflect improved market sentiments.
House price growth continued to remain in the positive territory across the UK in 2018 with only a few London boroughs being exceptions. Prices of Prime Central London properties, especially luxury homes, moderated in 2018, as demand from domestic buyers was lower. However, international buyers continued to show interest in prime London properties this year to take advantage of a weakened sterling.
Overall transaction volumes remained subdued in Prime Central London in 2018 while properties in Outer London boroughs and the commuter belt sustained demand momentum.
House prices showed a modest rise of 0.3% in November, according to Nationwide. This puts them at 1.4% up from the start of the year, on track to slightly overshoot our annual growth forecast of 1.0% for the country.