Thu 08 Dec 2016
Property giant Savills have released their most recent forecasts for housing trends over the next 5 years - suggesting it could be a bumpy ride. In an industry full of stats and data, Savills have a strong record in forecasting, and as such we give particular credence to their reports.
In summary, expectation is for property sale transaction levels to fall back from 1.45 million by 16% in the period to the end of 2018, as caution prevails through the post-EU Referendum period. However we then expect a recovery back towards around 1.24 million sales per annum by 2021.
These headline figures reflect the buyer sentiment of economic and political uncertainty that we are currently witnessing, as well as the continued mortgage regulation that has hindered many potential buyers. Despite the attraction of low interest rates on residential mortgages, the primary hurdle for many as property prices continue to rise (albeit at a slower rate), remains the ability to save for a deposit. We believe that it is therefore imperative that the government continues to offer incentives for first-time-buyers, taking the deposit burden away from the Bank of Mum and Dad.
On a local level, we also expect to see a continuation of the gradual slowdown of properties coming onto the market, certainly for the next 12-18 months. However PE19 remains an attractive, more affordable alternative to the market hot spots of Cambridge and London. and as such we are confident that buyer demand will continue to grow. With a the continued dearth of new homes being built nationally, market forces will inevitably push local house prices up further still.
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