The UK housing market is showing signs of recovery following a prolonged period of uncertainty, according to JLL.
The property firm forecasts that the residential property market will remain somewhat subdued in the short-term due to political uncertainty caused primarily by Brexit, but predicts a brighter future ahead once the uncertainty is out of the way.
JLL’s UK and London Residential Forecast Report, ‘Living with 2020 Vision’, projects that house prices will increase by an average of 14.8% over the next five years, with growth in regions such as London, Yorkshire & Humber and East of England set to outperform the national average.
JLL predicts that the private rented sector will experience ‘renewed energy and vigour’ following a slow five years.
Across the UK, JLL expects rental growth to improve by an average of 12% by 2024, with fundamental population changes, such as shrinking family size, longer life expectancy and demand for flexible, urban living space supporting the growth of renting.
The positive outlook for the housing market matches the forecast for the national economy, with GDP growth estimated between 1.7-2.0% pa.
As one of the fastest growing, dynamic and innovative cities in the world, London is set to lead the way in terms of growth.
Far outshining the rest of the country, annual GDP growth in the capital during 2021-2024 is predicted to grow between 2.3-2.5% pa.
Regardless of the anticipated exit from the European Union in early 2020, the London economy will, according to JLL, attract renewed business investment and confidence, catalysing growth overall.
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.”