Spring’s just four months away and house prices set to soar in post-Covid boom
Savills has predicted that the UK housing market will remain buoyant with prices set to rise by an average of 20.4% by 2024, despite the current Covid-19 pandemic, which has heightened uncertainty over the economy, employment, and of course finances.
In 2020 average property prices are expected to increase 4% this year before stabilising in 2021.
Commenting on the report published here, Zah Azeem, Partner at Wimbledon based surveyors Scrivener Tibbatts said: “Analysts forecast that outer London and the suburbs will see prices increase by 10.3%and 13.6% respectively over the next four years, while prime properties in central London are expected to rise 15.7% during the period.”
Savills issued an Autumn update stating: “As a clearer picture emerges, regarding the search for a vaccine, future requirements for social distancing or a second lockdown, as well as the pace and geography of the economic recovery and the government’s policy response – so the outlook for the housing market will inevitably change.
“With the prospect that economic forecasts will be downgraded over the coming weeks, we can be fairly confident that the current level of momentum in the market will be difficult to sustain through the remainder of the year, particularly as furloughing unwinds, despite the replacement Jobs Protection Scheme.
“Because of the underlying economic risks and the sheer volume of mortgage applications currently being submitted, there is evidence that lenders are seeking to focus their resources on low-risk lending.
“This means equity-rich buyers are driving a market which is more favourable to home movers than first-time buyers and cash as opposed to mortgaged buy-to-let investors. We expect this trend to continue over at least the next 12 months.”
And so do we. Lucky Wimbledon.
If you would like to discuss something related to a valuation please contact Zah via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
