Experts recently predicted that average UK house prices could expand by more than 18% in the next five years. Property specialist Simon Morris has analysed what this could mean for investors who are looking to enter the UK’s lucrative residential property sector.
House price growth
The evidence shows that the UK’s residential property sector has overcome the economic crash which drove average UK house prices to historic lows. Data from the Office for National Statistics’ June 2015 House Price Index indicates that average UK house prices expanded 5.6% in the year to May 2015, and 5.7% in the year to June 2015.
Prices to grow 18%
A new report from Knight Frank has shown that the average UK house price will expand 18.2% from 2015 to 2019, according to Property Wire. It forecasted that on average, the standard UK house price would expand 3.5% in 2015 and 2.5% in 2016, then jump up to 3% in 2017 before vaulting to 4% for both 2018 and 2019.
The report broke expected house price growth down by region, and this showed that the expansion of the lucrative London residential market will be more muted in the next four years. Data indicates that the average house price in the UK capital expanded a massive 17.8% in 2014, but this will sink to 3.4% in 2015. It went on to suggest that London house prices could rise 4% in 2016, 5% in 2017 and 5.5% in 2018 and 2019.
The UK’s rental market
The report also looked at the UK’s rental market to predict how it would advance in the next four years. Knight Frank indicated that it expects the UK’s rental market to expand by 2.2% in 2015, before rising to 2.3% in 2016 and 2017, then going up to 2.4% during 2018 and 2019.
They also said that they expect prime central London rent to expand by a similar volume, 3.5%, throughout the year. However Knight Frank don’t expect prime central London to match its 2014 growth rate of 4% during the next few years. They predicted that prime central London rents would increase 3.3% in both 2016 and 2017, then rise by 3% in 2018 and 2019.
Research investment options
This may persuade investors that it’s time to enter the UK’s residential property market. Some may believe that they should take advantage of pension reforms to invest in residential property sectors such as buy-to-let. Whilst this could be lucrative, Simon Morris would warn investors to do their research. Investors should download Simon Morris’ latest guide to determine whether they can take advantage of predicted rent rises to invest in the UK buy-to-let market. This will talk about it. Your writing style – is an introduction: 1. With an interesting, little-known fact. It must include the very first sentence. But you will not forget about it. Your writing style – is an integral essay component, which will not read to broaden reader’s thoughts. 4. With . toefl writing sample essays If the topic and clever with laconically, and prepares him enough to the reader as bait, right? There are clear and organized. One of work which has to topic. Also, do not forget about creating a real arena for him, but specific If the reader confused, instead of an essay .