Savills is optimistic about the future of the real estate market of England

Economic uncertainty in connection with the UK out of the EU will cause two more years of weak growth in housing prices, but falling prices will discourage low interest rates on loans. The average expected price growth for property in the UK over the next 18 months, about 2%, and further, by 2021 – up to 13%. Most likely, a faster rate will increase the price of real estate in the East of England, reaching 19% by 2021.

Estate Agency Savills has presented its forecast for the housing market in the United Kingdom. Despite the fact that the market of real estate of great Britain is under pressure from two factors – uncertainty in connection with Brexit and high rates of Stamp duty, it is expected that the pace of price growth in the elite housing market by 2019, will outperform other sectors of the real estate market.

As for the number of sales, Savills predicts that the expected decline in sales to 16% over the next two years, and then recover by 2021. However, this average picture, but in the context of different groups of buyers, sales volumes will also be different.

The reduction of lending to the sector a “buy to let”, as well as pressure on the sector increased rates of Stamp duty will discourage investor activity and increased rental demand pushing up rents, which eventually will lead to progressive growth in rental rates relative to the growth of prices for real estate in England. The most popular, as before, is to rent a property in London, the rates which are expected to grow by 20%.

In General, analysts Savills give a favorable forecast for the market in UK property. After 2 years of uncertainty buyers when prices will rise very slowly, in 2019 the market sentiment will improve and we can expect increased interest rates on loans. Will be nice to feel the first-time buyers bought their homes. But investors, under fiscal pressure, will reduce its share of investments in the market, if they will not be charged an additional tax burden of 3%.

® Alice Morgan. 01.11.2016 G.

Tax on capital gains in the UK

Taxation legal. individuals in the UK

What “Stamp duty”

Land and types of ownership of property UK

Why we recommend to buy new apartments and houses

Our apartments and houses in England excellent quality

Brexit: the naked triumph of the ignorant or the collapse of democracy?

Why Brits want to leave EU?

Why buyers from Russia should not fear sanctions

Immigration to the UK

Price indices for UK property