Muted UK house price appreciation in 2018 will be followed by four years of growth, according to a new forecast from a leading UK property consultancy. It predicts that overall residential property will appreciate by 2.5 per cent in 2018 and 2019, rising to 4 per cent per annum for the following three years, meaning a cumulative 18 per cent by 2023.
“While Brexit negotiations continue and political and economic conditions remain uncertain, we have held our residential house price forecasts for sales,” said Vanessa Hale, director of research. “We would expect some bounce back and a return to growth once more stability has returned to UK politics and the economy.”
There are already signs of returning activity, said Guy Robinson, head of residential: “We are hopeful that a lift in confidence will see an increase in supply to meet current buyer demand.” His colleague Charlie Willis, head of London residential agency, added: “There has been a recent increase in competitive and sealed bids; and early signs that transaction levels and buyer confidence are rising. Buyers realise that there will be more competition in the market the closer we get to a resolution on Brexit, and that they should make the most of fixed lending levels now, with further interest rate increases likely.”
In terms of rental activity, the supply of turnkey property is falling, as investors return to the sales market, according to Kate Eales, head of residential lettings. At the same time, tenants are becoming more choosy, she believes: “The tenants that are out there in the market are more discerning than ever and want the best on offer,” she said.