UK house prices to remain broadly unchanged until 2019

UK house prices to remain broadly unchanged until 2019

Todays other news
Protests have taken place in San Sebastian, the Canary Islands,...
A development providing 105 private sale apartments and substantial commercial...
Over a third of Londoners who move are choosing to...
It shows the areas of England which are home to...
The average price in Edinburgh, the Lothians, Fife and the...


Residential property prices in the UK are expected to remain largely flat until the Brexit negotiations are concluded in 2019, according to JLL. 

Fresh research from the property group suggests that the housing market across the UK will be “more subdued” over the next few years, with home prices not set to recover until 2020 at the earliest, and that is “assuming Brexit negotiations are not too detrimental”.

Reassuring for many property investors, JLL is not forecasting any major house price corrections, despite uncertainty around Brexit, with the company forecasting that prices across the UK will rise by 0.5% in 2017 and 1% in 2018, before increasing by 2% in 2019 and 4% in 2020.

JLL believe that any dramatic falls in home prices will be cushioned by the ongoing supply-demand imbalance in the market, which could yet widen further on the back of a potential fall in construction levels, especially in London. 

The number of new homes currently being built remains significantly below the government’s target of 200,000 new homes a year, and is almost half the estimated 300,000 new homes a year needed just to meet existing demand for housing in this country, according to a new report from the House of Lords Economic Affairs Committee.

And yet, rather than increasing new housing supply over the next few years, Neil Chegwidden, director of JLL residential research, believes that the volume of new build homes coming on to the market will drop to around 134,000 units next year, which will start to place upward pressure on house prices once demand from buyers picks up again – possibly from 2018 onwards. 

Chegwidden said: “Of deeper concern is that housebuilder activity could pull back from current rates of construction.

“Although levels of new housing delivery were still woefully low prior to the referendum at least the direction of travel was positive and encouraging. This will now fall back again.” 

Share this article ...

Join the conversation: Login and have your say

1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
A development providing 105 private sale apartments and substantial commercial...
A jump in demand to invest in commercial property compared...
Legal & General to create “the UK’s first new-build independent...
A developer is to highlight the potential of the UK...
The financial success of your buy-to-let depends on the investment...
UK commercial investment volumes and values will start to improve...
Average annual rental growth across a basket of 15 cities...
Recommended for you
Latest Features
Protests have taken place in San Sebastian, the Canary Islands,...
A development providing 105 private sale apartments and substantial commercial...
Over a third of Londoners who move are choosing to...
Sponsored Content
In the ever-evolving landscape of property investment, staying ahead of...
Property investors, This one's for you. Lendlord's latest Deal Analyser...
The savvy property investor knows the importance of adapting their...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here