Savilles, one of the leading UK estate agents has recently published their property market forecast on 2nd Nov 2018. These predictions are, by and large, very positive. They forecast an overall rise in both house prices and also in rental value from 2019-2023. Savilles predict that the average UK house prices will increase by 14.8% between now and 2023. This percentage growth varies throughout the country, with homes in the North West predicted to rise in value by up to 21.6%.
Prime Location Property Prices
Over the past 10 years, property prices in London have risen by a whopping 72%. This rise far exceeds the property prices in any other region of the UK. To be able to afford the extortionate prices charges in prime areas of the UK’s capital city you will need to earn in excess of £75,000. Furthermore, you will need a big chunk of money as a down payment, it is normal for people to pay a deposit of £100,000+ or more to secure a prime location property.
However, over the next few years, it is predicted that these prices will fall by <2% before increasing again in 2021. Overall the house prices in London are set to rise over the next 5 years by around 4.5%. Interestingly London’s prime market should see a much larger increase in property value, with properties prices rising <12.4%, Savills predicts.
The capital cities property market is split into two streams – mainstream London and the Prime London housing markets. The premium price paid for a prime London location rises independently to that of the rest of the UK. By 2023 prime London properties should see a rise of 12.4% Savilles reported on the 2nd November 2018.
Regional Property Prices
The northern regions of the UK have not seen such a steep rise in property prices over the past 10 years. Instead, the property prices in Scotland and Wales have risen by just 1.9%. However, this trend is set to change in the coming years. Savilles have predicted a change in the trends and will see much higher growth in the coming years.
If you are looking to buy a property in London, it is a good idea to get the ball rolling in the next few years before the property prices could see a quick increase in 2021 (if Savilles predictions are correct). However, these prices are not taking Brexit into consideration. Many people remain unsure about how Brexit will affect the UK property market and would prefer to hold off. However, that may mean losing out on the lower prices on offer right now.