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13% On House Prices Expected By 2023

13% On House Prices Expected By 2023

A recent report from CBRE, one of the foremost property consultancies in the UK, has given an, unexpected by some people, relatively upbeat prediction of the housing market in Great Britain over the next 5 years.

We have put together some of the highlights of the research by CBRE together for you so you can quickly and easily see the research that is relevant to you, whether you are buying or selling a home, or renting / looking to rent your property.

  • CBRE forecasts a 1.8% growth in the average price of houses in 2019. While this may be a modest forecast, it is more optimistic that forecasts from other property experts. It is important to note that 2019 transactions volume is restricted because of the growing caution among property owners, buyers and lenders, along with a muted buy to let market.
  • The CBRE consultancy predicts that compound price growth will be up 13.1% by the end of 2023.
  • CBRE warn that while ‘Help to Buy’ schemes currently underpin the new build market, it is likely this will change after 2021 when only first time buyers will be eligible for these schemes.
  • CBRE feels that house prices are approaching the limit that current incomes and credit conditions can support. This means that the ability for buyers to bid up prices has now become, and will continue to be, limited. It is important to note that affordability and mortgage regulation will constrain the price growth of house prices.
  • Speaking on the lettings market, CBRE forecasts that rents will increase by 11.4% by the end of 2023. CBRE add that the demand for rental homes is expected in increase after a two year period, and this in turn will weaken tenant enquiries, more so from younger people in lower-earning brackets.
  • CBRE feel that biggest highlight of private rental landscapes is the growing ‘Build to Rent’ niche. This niche attracted £2.1 billion of investment in year to the end of the 3rd quarter in 2018. This is 51% higher than the same period in 2017. CBRE add that property investment is on a firm upwards trajectory and it is likely that the investment volumes in 2019 will exceed the total of 2018.

If you’d like to know more about the housing market and how it could affect you and your own property or home, then why not call us now. We make it our business to stay ahead of the latest news so we can make sure we help our customers get the most from buying, selling or renting a home in Peterborough.