Whilst the Brexit talks continue and the cloud of uncertainty hovering above the UK is yet to pass, there have in fact, been some encouraging predictions for the UK property market this week, with many industry voices predicting a rise in house prices in 2019 and beyond.
House price growth relatively moderate but overall positive
The latest forecast from Halifax has said that, following a turbulent year in 2018, stability would return to the market in 2019 with growth of between 2% and 4%. This is slightly stronger than 2018, but unsurprisingly, is still fairly subdued in the current Brexit-dominated atmosphere.
Other predictions show similar levels of optimism, with estate agent Strutt & Parker forecasting growth to be 2.5%, and another agent Jackson-Stops, expecting an average increase of 1% in property values in 2019.
In the latest report from global real estate and investment firm, CRBE, UK house price growth in 2019 has been predicted to be “relatively moderate” at 1.8%, but they expect overall prices to see steady cumulative growth of around 13% in the next five years.
Rental prices forecast to rise, depending on location
The CBRE forecast suggests that rents are set to rise over the next five years, and demand for rental homes will increase after a two year period of weakening tenant enquiries.
Nationwide rental price growth figures also predict that, whilst overall growth may not be that impressive, there is still considerable rises in rents and prices depending on location.
Prime Central London – A different picture with potential downside risk
However, location is key when analysing the figures reported by the media. It’s clear that the forecasts for prime central London (PCL) paint a very different picture as transaction levels continue to be low by historic standards. Best case scenario predictions include a possible 2% growth for PCL house prices but as much as -5% as a downside risk.
UK housing stock hits a record valuation
And finally, according to analysis from real estate adviser Savills, last year the total value of UK housing stock increased by £190 billion to hit a record £7.29 trillion. This puts gains from housing ahead of the £187 billion collected by HMRC in income tax in the 12 months to November 2018.
Final word
We do not deny that there are major challenges ahead, most notably Brexit and interest rate rises, but there is also a lot to look forward to.
At Hubb, we are absolutely confident that our success will continue despite this uncertainty. Simply by choosing the right investment opportunities for our investors, we are able to offer realistic and 100% achievable returns.
Sources:
https://www.telegraph.co.uk/property/house-prices/house-prices-recover-2019-4pc-rise/?WT.mc_id=tmg_share_li
https://www.propertywire.com/news/uk/property-prices-set-to-rise-by-2-5-in-the-uk-in-2019-says-latest-industry-forecast/
https://www.struttandparker.com/forecast
https://www.rics.org/uk/news-insight/latest-news/press-releases/uk-housing-forecast/
https://www.savills.co.uk/insight-and-opinion/savills-news/273857/uk-housing-stock