South East expected to outperfom London
House prices in the UK are expected to grow more slowly in the second-half of 2016 according to predictions by the Centre for Economics and Business Research (CEBR), however house prices in the South East are expected grow faster than London as more homebuyers are driven out of the city by an increasingly expensive housing market.
The high cost of housing in London is caused by the chronic shortage of housing supply and new homes are not being built at a rate sufficient to compensate for this shortage, factors that are driving up both rents and property prices.
The economics consultancy predicts that house prices will increase by 4.9 per cent in 2016 overall compared with 6.7 per cent last year and 10 per cent in 2014.
East London residential property prices increased by 7% in the year to March, according to new research from JLL today, the property firm’s latest central London development report shows a reduction in sales activity in the first 3 months of the year and forecasts that development activity will also continue to slow this year as a result of tougher tax rules introduced by the government.
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