Here’s an interesting update for home-buyers, investors and buy-to-let landlords in London! House prices and rents are set to grow in double digits in Greater London over the next five years, according to the latest UK Residential Forecast from global real estate services firm JLL.
By 2023, house prices are set to grow by 14.8 per cent while the rental growth forecast for the same period is 14.2 per cent in Greater London. The house price growth forecast for Prime Central London, one of top property hubs in the world, is 15.3 per cent while the rental growth forecast is 10.4 per cent by 2023.
Though Brexit impacted the London property market significantly, house price growth has remained in the positive territory in Greater London. But Prime Central London experienced fall in prices in the last 18 months. Nonetheless, the market is set to recover in view of various factors, with the major one being undersupply of properties to the market.
JLL expects new housing starts in London to remain around 20,000 units a year over the next three years, before rising towards 25,000 a year by 2023. “Undersupply will continue to provide some support for house price growth,” JLL observed.
Assuming the UK agrees a deal with the EU before March 2019 and that the current timetable is adhered to, confidence is likely to return to the Greater London housing market during the second half of 2019. However, house price growth and transactions are likely to remain quite weak in 2019, JLL findings, reported.
Thereafter, the London housing market will be the most responsive to the greater certainty of a Brexit deal. JLL expects house price growth to rise to 2 per cent in 2020, before rebounding more strongly to 4 per cent per annum in 2021–2022.
JLL anticipates a fillip to Prime Central London market confidence in 2019 once the EU deal is approved. The greater certainty will immediately boost demand from domestic and international buyers – the latter particularly keen to benefit from the short-term currency advantage.
Prices will begin to rise almost immediately, albeit gradually to start with, but it will take longer for transaction volumes to recover. Prime Central London price growth could rise to 1 per cent in 2019 and 2.5 per cent in 2020, JLL observed.
In view of all these developments and findings, an investment in a Greater London property is recommended to take advantage of the capital gains in 2023 in view of the projected house price growth. Strawberry Star has several such residential properties, including buy-to-let properties for sale. If you are interested in investing in such properties, connect with our estate agents.
Source: JLL UK