2016 has most certainly been a year to remember. If you had waged in the new year that Leicester would top the Premier League, the UK would vote in favour of Brexit and Donald Trump would be elected as America’s next President, well, you would be a very rich person right now. It’s unsurprising then that such big political events, namely Brexit, (it’s still too early to tell about the Trump effect…) will have an impact on the UK housing market.
Property group JLL has recently forecast that in response to Brexit, and the uncertainty surrounding the negotiations, house price growth will be ‘subdued’ and largely flat until 2019. JLL has predicted that across the UK there will be a 0.5% price increase in 2017, increasing to 1% in 2018 and then to 2% in 2019. As confidence grows, house prices could then rise by 4% in 2020.
This corresponds with house price growth predictions for the most expensive properties in London with Greater London property prices likely to rise by 3% in 2019. House prices in other areas i.e. Wales, the north-east and the south-west are all predicted to grow at the slowest rates in the country.
It is hoped that by 2018 there will be more clarity on the direction of the Brexit negotiations and, as confidence grows, this will be reflected in house prices. An increase in confidence should also help to improve the number of properties being built.
Neil Chegwidden, JLL, highlighted concerns that “house builder activity could pull back from current rates of construction. Although levels of new housing delivery were still woefully low prior to the referendum at least the direction of travel was positive and encouraging. This will now fall back again."
The lack of supply of new homes will only add to the increasing demand within the UK house market and could be one of the key factors in 2018 to boost house prices.
Whether your looking to buy or sell in the Croydon area and are interested in how this might affect you then please do get in touch with our team.