Average UK house price growth expected to slow over next 5 years says Savills
A recent research report from Savills the International Real Estate Adviser reveals that: Average UK house price growth is expected to slow to 14 per cent over the next five years, but there will be marked differences between and within regions. In their key numbers section they mention, 2018-2022 average UK house price growth forecast to total +14%, range to be +18.1% in North West to +7.1% as a London average.
The report published on the same day that the Bank of England announced an increase in interest rate to 0.5% mentions that: UK house price growth is expected to slow next year as uncertainty weighs on sentiment. A return to growth is expected in 2019-20, assuming employment, wage and GDP growth swing back towards trend levels, though this will be tempered by interest rate rises.
Lucian Cook, Savills head of residential research said:
“Uncertainty over what Brexit means for the UK economy and how it will impact household finances will increasingly act as a drag on house prices.
“There is capacity for growth once we have greater clarity, but this will be constrained by rate rises and the corresponding ability to get mortgage debt, particularly in London and other higher value locations.
“Mortgage regulation, introduced in 2014, is likely to show its hand as interest rates rise. But by restricting the amount people can borrow, it will take the heat out of the market and so reduce risk now and in the future.”
Read the Savills research report in full click here.
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