Prices in the property market of the UK are under pressure of uncertainty

Analysts of the market of real estate of great Britain in one voice insists that Brexit does not have a significant impact on the market, however, the latest report by real estate company Knight Frank, shows that the Outlook remains uncertain and prices are likely to remain under pressure throughout 2017.

Currently, the market of real estate of London and the rest of the UK looks pretty good. After a sharp dip in confidence in July, immediately after the referendum, by the autumn activity perked up and even exceeded expectations.

This means that most regions of the UK, except for Wales, by the end of the year will see an increase in property prices of 5%. The best are the South and South-East of England, ahead of higher prices in London.

Looking ahead, for the next five years, Knight Frank analysts believe that the London slower growth in prices will spread to other regions of the UK, and in London in 2017 will be a slight decline in prices.

The main reason for the slowdown in prices in property in the UK will be economic uncertainty and in this regard, the uncertainty of buyers, which is expected to reach its peak in late March, when it will be officially announced exit from the European Union. The second factor for the decline in prices will increase the tax burden on investors.

As for elite real estate of London – the decline in prices in the Western part of London, 7% in 2016, means, according to Knight Frank, prices are nearing bottom, but at the same time, do not rule out further price adjustments down in a separate exclusive areas of London until the end of 2017.

The rental market of residential property in the UK looks quite positive with a forecast of slight growth in rents. In 2016, prices began to rise, but was offset by good growth proposals . In 2017, the growth in rents can increase if homeowners begin to sell their property, unable to bear the tax burden and tenants will feel the lack of supply.

In the core market of the UK property Knight Frank gives quite a conservative estimate. After growing 5% in 2016 prices under the pressure of uncertainty will increase by 1% in 2017 , 2.5% in 2018, 3% in 2019 and 2020 and 4% in 2021.

On the London real estate market are expected to fall by 1% in 2017 and then gradual progressive increase in prices by 2% in 2018 and 2.5% in 2019, 3% in 2020 and 5.5% in 2021.

® Alice Morgan. 01.12.2016 g    

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