Christmas and the New Year are a good time to take stock and look forward to what the future has in store. Simon Morris, an independent property advisor, in this blogpost takes the time to look at property trends over the next year and even beyond.
The UK housing market seems to have undergone a rapid change over the last ten years, what we considered normal 10 years ago, looks unlikely to return in the future as a shift has occurred in the very fabric of home ownership in the UK.
Making house price predictions, not just for this year but for the next half-decade is something that’s useful for many investors in property, both bricks and mortar property and for those investing in property funds.
Can we predict the house market in 5 years’ time?
Our course, not many commentators would go so far as to make predictions on property prices and publish them, that’s why I was interested in an interactive map created by estate agent Savills. Which set out to explain in an interactive way what they believe the market will hold stretching right up to 2019.
The map which can be viewed here. Makes some confident predictions about the future of the market. Including the bold claim that in five years’ time the market will have risen by 17.5% in Scotland, 20.4% in the North, the Midlands and Wales, 22.2% in the wider South of England, 24.5% in the outer commute of London, and 25.1% in the inner commute.
The prime suburbs of our capital city will see a 25.7% increase in prices and London Prime will see a 22.7% increase. If Savills are correct, the timing is still right to make property investments over the longer term.
How the figures breakdown is interesting also, Savills predict that next year, in most areas growth will slow, but this is only temporary as the market again heats up following a hiatus in 2015.
I don’t make predictions, and when it comes to the property market nobody has a crystal ball, but these projections do suggest that the canny investor should continue to keep an element of property within their portfolio, in 2015 and beyond.
About Simon Morris
Simon Morris is an independent property advisor working with Funds and Investment Companies to ensure property chosen for funds and portfolios delivers agreed return based on low risk.
For more information on property investment vehicles please read the Guide to Property Investment Options.