You cannot deny that there has been a general feeling of uncertainty in the UK for the past four years, thanks to political events like Brexit and the numerous elections that took place after the initial referendum (including the general election that is due to take place on the 12th of December). This has certainly been reflected in the property market - a lot of people are taking a ‘wait and see’ approach when it comes to buying and selling their properties and it has recently been reported by NAEA Propertymark that the UK housing supply dropped in October , with the number of available properties per branch dropping to an average of 39. This is the lowest figure that has been recorded since June of this year.
Thankfully, things are starting to look up for the UK housing market, with predictions that it will be finally coming out of this prolonged period of uncertainty. According to property firm JLL, the market will remain somewhat subdued in the immediate future, in the wake of Brexit and the general election, but will start to gain traction again once the dust has settled and the uncertainty in the market has died down.
In the study carried out by JLL, it is predicted that house prices across the UK will increase by an average of 14.8% over the next five years, with regions like Greater London, Yorkshire and the East of England expected to outperform the national average.
The private rented sector is also expected to have a brighter future in the coming years - JLL predicts that rents will rise by an impressive 12% thanks to changes in the population, such as smaller families and longer life expectancy - indicating that people will be renting for much longer periods of their lives. The introduction of flexible urban living spaces also supports the increasing demand for rental properties and helps to encourage tenants to stay in the private rented sector for longer.
Nick Whitten, director of UK Living Research & Strategy, JLL, said: “We’re coming to the end of a long period of uncertainty and 2020 marks a key moment in time for all of us to reassess and firm up the infrastructure and economies that will support the UK’s future success.
“As we approach the General Election, we expect housing to ride high on the political agenda, as society faces fundamental social changes our towns and cities will see the highest housing demand.
“We are seeing an ever-increasing connection between living and technology, as well as growing climate and social awareness, and it is vital that the key political and economic stakeholders, investors and developers embrace these new opportunities to ensure the UK economy and housing market can achieve the momentum we predict for the next five years.”
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