UK Residential Property Market

The UK economy provides a positive backdrop for the UK residential property market. Most forecasters at the Bank of England expect GDP to rise upwards of 2.0{985bc1cbce5a5bc43d7edd09447b32ccd0d8c63b4c698965d4f7b117340487a5} this year. Strong capital value growth is undoubtedly the key theme of 2016, with growth across all sectors stronger than many forecasts. This continuing capital value growth across all prime sectors is expected to be maintained, albeit at a more sustainable rate.

According to Halifax, the UK’s strong economic prospects have also seen a remarkable overlap of benign domestic economic factors – low inflation, historically low interest rates, rising employment, real wage stabilisation and strong GDP growth – which have given the UK an unrivalled ‘feel good factor’ compared with other G7 economies.

2016 has shown strong property performance, with returns being dominated by capital growth, resulting in making residential property a highly attractive asset class for investors. Investment appetite is further fuelled by the falling cost of finance.

With the macro-economic story for the UK remaining benign and the base rate expected to remain unchanged till mid 2017, the combination of low oil prices and recovering incomes is expected to give a boost to the UK residential property market.