UK property prices set to rise 2.5% in 2019
Property prices could rise by up to 2.5% next year according to new research.
And the longer forecast predicted as part of a market report from agents Strutt & Parker includes an 18% growth projection from 2018 to 2022 with the number of viewers and buyers set to gradually increase.
However, the forecast for prime central London real estate could sit around the 2% growth mark for houses in 2019 as a best-case scenario, with a worst-case scenario suggesting a 5% price fall. However, capital regions including Notting Hill have been highlighted as potential growth zones that could buck any slow-down trend across the city.
Stephanie McMahon, head of research at Strutt & Parker said: “Substantial economic and political uncertainty remains both nationally and globally and this does not look likely to change any time soon. The likely outcome of Brexit negotiations remains extremely unclear, with the potential for this uncertainty to continue longer than we hoped for.
“In London, we expect to see stagnant prices of further negative growth in the final stage of 2018 with the possibility of further price decreases continuing into 2019.
“Beyond 2019 it is extremely difficult to forecast the market with any certainty and we would expect some bounce back once more stability has returned. The fundamentals of the UK economy remain broadly positive, with sentiment remaining cautious.”
This research from Strutt & Parker is in-line with previous market forecasts including from estate agents Savills which predicted a 14.8% house price rise over the next half-decade.
Savills’ report forecast wild variations in growth by region with the most aggressive rises expected in the North West (21.6%) and Yorkshire & Humberside (20.5%). Wales and the East & West Midlands are also set to see +19% price growth.
However, the South East and London will pull back the overall average growth with forecast growth at just 9.3% and 4.5% respectively.
Current levels of affordability are playing a huge part in price growth across UK regions. London and the South have seen more stunted growth over the last two years in particular as asking prices reach an affordability limit for prospective buyers. Elsewhere, particularly in the North West where prices started from a cheaper and highly affordable position, prices have far more room to grow which is supporting and sustaining high growth.