The latest industry forecast report says that property prices in the UK are set to rise by 2.5% in 2019, and 18% by 2022.
Despite this, the trends in prime central London are different and the amount of transactions remains low by historic standards. This is according to the outlook report by Strutt and Parker.
They have therefore reduced their forecast down to 2% for houses in prime central London in 2019 (best case scenario). They also warn of the potential for a 5% price reduction in the area.
Strutt and Parker’s head of research, Stephanie McMahon said, ‘Substantial economic and political uncertainty remains both nationally and globally and this does not look likely to change any time soon. The likely outcome of Brexit negotiations remains extremely unclear, with the potential for this uncertainty to continue longer than we hoped for,’ said Stephanie McMahon, head of research at Strutt & Parker.
‘In London, we expect to see stagnant prices of further negative growth in the final stage of 2018 with the possibility of further price decreases continuing into 2019,’ she explained but added that the prediction for the prime central London lettings market is slightly more positive, with the forecast for 2019 at 1.5% rental price growth.
‘Beyond 2019 it is extremely difficult to forecast the market with any certainty and we would expect some bounce back once more stability has returned. The fundamentals of the UK economy remain broadly positive, with sentiment remaining cautious,’
The report also expresses that the buy to let market in the UK as a whole looks relatively stable, highlighting the importance of micro-economics (specific locations) over macro-economics (like the UK average).