After the Brexit vote, the UK is in a volatile state indicating lower levels of investment and underlying uncertainty. So how uncertain is the future actually? And what will house prices be like five years from now?
The housing market definitely has to adjust to a new era, giving Savills an option to have a second look into the development of house prices and share their new prognosis with us.
First of all, Savills expect low interest to continue to protect the market, saying that “we look set for two years of low to zero growth as Brexit negotiations proceed.” After the two year period, greater clarity should boost confidence for consumers. This will lead to minor increases in price, limited by interest rate rises, particularly in those areas where affordability is already rare.
Over the next five years, until 2021, Savills predicts the strongest growth away from London, with the East and South East topping the list.
Moving up north from London, more affordable markets like the Midlands, Wales and Northern England, show a bigger capacity for house price growth. Whilst most may lack the economical catalyst to unlock their potential, hotspots like Manchester could push the increase even further and outperform the area’s average.
Here an overview by area of Britain’s house price growth over the next five years (2017-2021):
East of England: 19%
South East: 17%
South West: 14%
East Midlands: 14%
West Midlands: 13%
North West: 12%
Yorkshire and the Humber: 10%
North East: 9%