Buy to let market could be brighter after Brexit
A brighter future is predicted for the residential property market after the political uncertainty caused primarily by Brexit is settled, property firm JLL has claimed.
JLL’s UK and London Residential Forecast Report, ‘Living with 2020 Vision’, projects that house prices will increase by an average of 14.8 per cent over the next five years.
And growth in regions such as London, Yorkshire & Humber and East of England is set to outperform the national average.
JLL predicts that the private rented sector will experience ‘renewed energy and vigour’ following a slow five years.
It expects rental growth to improve by an average of 12 per cent by 2024, with fundamental population changes, such as shrinking family size, longer life expectancy and demand for flexible, urban living space supporting the growth of renting.
The positive outlook for the housing market matches the forecast for the national economy, with GDP growth estimated between 1.7-2.0 per cent per annum.
As one of the fastest growing, dynamic and innovative cities in the world, London is set to lead the way in terms of growth.
Nick Whitten, director of UK Living Research & Strategy, JLL, said: “We’re coming to the end of a long period of uncertainty and 2020 marks a key moment in time for all of us to reassess and firm up the infrastructure and economies that will support the UK’s future success.
“As we approach the General Election, we expect housing to ride high on the political agenda, as society faces fundamental social changes our towns and cities will see the highest housing demand.
“We are seeing an ever-increasing connection between living and technology, as well as growing climate and social awareness, and it is vital that the key political and economic stakeholders, investors and developers embrace these new opportunities to ensure the UK economy and housing market can achieve the momentum we predict for the next five years.”