A new report has revealed the UK regions expected to see the greatest levels of property price growth in the next five years.
The 2017 outlook report from Strutt & Parker suggests that Greater London, the South East and the East of England will perform best over the timeframe.
Property price increases
London is estimated to see prices increases by 16.5%, the South East 16% and the East of England 14.2%. However, ongoing uncertainty caused by Brexit and economic pressures makes forecasting growth very difficult.
Stephanie McMahon, Strutt & Parker’s head of research, observed: ‘’The differing of opinions between forecasters going into 2017 is an indicator of the uncertainty currently going on in the market, things are far more difficult to predict than usual because of the high number of upcoming global events.’[1]
‘Article 50 may or may not be triggered by the end of March 2017-we just don’t know at the moment and so the potential impact is difficult to call. It is crucial that we view the UK through the prism of global investment stability,’ she continued.[1]
Where will see the largest property price increases in the next 5 years?
Fundamentals
McMahon believes that given the uncertain nature of the economy and sector, ‘we need to go back to looking at the fundamentals of the UK’s property market. When compared to the rest of the world, we have benign corporation tax, mid-level residential property tax, a favourable GMT time zone, we speak in the international business language and have huge depth of markets and skills. As a result, our economy is currently holding up better than perhaps many expected following the European Union referendum.’[1]
She also believes that rising inflation will have an impact during 2017, noting: ‘It is important that the Government quickly addresses the undercurrent of the Brexit voting and encourages growth in the regions.’[1]
[1] http://www.propertywire.com/news/europe/london-south-east-england-set-see-best-property-prices-2017/