Property prices set to rise by 2.5% in the UK in 2019 says latest industry forecast
Property prices in the UK are set to grow by 2.5% in 2019 and by 18% from 2018 to 2022 while the number of buyers and viewers will increase gradually, according to the latest forecast report.
However, the trends in the prime central London market are different and transaction levels continue to be low by historic standards, according to the outlook report from agents Strutt & Parker.
As a result, the firm has revised its forecast for the prime central London market down to 2% for houses in 2019 as a best case scenario and warns that there is a risk of prices falling by as much as 5%.
‘Substantial economic and political uncertainty remains both nationally and globally and this does not look likely to change any time soon. The likely outcome of Brexit negotiations remains extremely unclear, with the potential for this uncertainty to continue longer than we hoped for,’ said Stephanie McMahon, head of research at Strutt & Parker.
‘In London, we expect to see stagnant prices of further negative growth in the final stage of 2018 with the possibility of further price decreases continuing into 2019,’ she explained but added that the prediction for the prime central London lettings market is slightly more positive, with the forecast for 2019 at 1.5% rental price growth.
‘Beyond 2019 it is extremely difficult to forecast the market with any certainty and we would expect some bounce back once more stability has returned. The fundamentals of the UK economy remain broadly positive, with sentiment remaining cautious,’ McMahon pointed out.
The report also says that overall, the buy to let market looks to be relatively stable, albeit with subdued levels of new uptake, due in part to the impact of recent legislative and tax changes.
Banbury, Buxton, Horsham, Linlithgow, Llandudno, Loughborough, Malton, Penrith, Sevenoaks and Totnes are all named as place to look out for in 2019 in the regions while Notting Hill in London is tipped to buck the prime property slowdown in the city.
Waterside property is also projected to do well. The firm says that a rise in flexible working is helping to facilitate the popularity of waterside living among young professionals and there has been an increase in those who desire to live near to docklands at 7% compared to 1% in 2017. The report suggest that this reflects the increasingly dynamic and aspirational nature of dockland regeneration areas such as those in London and Liverpool.