The recent Office of National Statistics- House Price index shows strong evidence that the growth in the UK residential property sector is likely to continue and stabilise in the coming years. According to the ONS, the desire for professionals to live outside major cities and commute to work is at a record high, which is also assisting growth to expand in regional variations.
Increasing activity within the regional markets also confirms that investors are attracted to high yields and strong occupier demand in regional centres. Confidence in the outlook for house price growth was also confirmed when growth in prices hit its highest level in four years, following the European Referendum.
According to The Centre for Economics and Business Research the next couple of years may record lower house price inflation, but by 2021 the average UK property will be around £40,000 more expensive than it is today.
Robert Gardner, Nationwide’s Chief Economist believes that the referendum result may soften housing market transactions over the next few months, but a cheaper pound and historically low interest rates will act as a catalyst for overseas investors.
According to a recent report by Countrywide, (Britain biggest lettings and Estate Agents), house prices in London and the South East will witness a moderating pace in the next 12 months to date. Countrywide attribute this to the period of uncertainty that the UK economy may witness in the months to come following the Brexit Vote.
Lucian Cook, the Residential Research Director for Savills believes that demand for the prime rental markets in London and the South East of England will increase in the months and years to follow, as small properties continue to outperform larger ones across all locations. Properties that are within a city or town centre or close to local amenities will continue to attract strong demand.
Cross Rail 1 will launch in 2017 with the Elizabeth Line, which will connect Essex and Buckinghamshire through Central London. Savills and Foxtons believe that this will give a boost to property prices across Essex and Greater London.
Susan Emmett, Director of Residential Research at Savills, feels Manor Park, Ilford, Seven Kings, Goodmayes and Chadwell Heath could continue to grow over the next few years. These are core areas where RC Limited specialise in investing.
Looking forward, major economists and housing experts believe that demand for properties in Outer London and Essex will continue to rise and will witness an increase in prices in the traditional relocation destinations of Outer London and the South East.