We're often reading about short-term trends in the housing market – one minute prices are down by a few tenths of a percentage point and the next minute they're as high as they ever were. So, whenever longer-term projections come along, it's like a breath of fresh air – being able to think years, rather than months, ahead is far more useful when planning about our own housing situation.
A new major report sheds some light on the next few years – and the findings will be welcome news to anyone aspiring to own a home in the UK, particularly in the capital. Property consultancy JLL has published a forecast and concluded that the "golden age" of booming house prices (we're guessing a young person didn't coin this phrase) is about to end, the Telegraph reported.
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House price growth across the UK will be far slower in the next five years than in the previous two decades, with prices rising by just 1% next year and stalling in London, the report said. For wannabe homeowners used to paying astronomical rents – particularly in the capital – and unable to save for a deposit, it's pleasing news.
Things are predicted to pick up slightly in 2019, with average growth across the UK expected to rise to 2% and 3% in 2021, which is still considerably lower than the 6.9% average of the last 20 years, the report pointed out.
Andrew Burrell, JLL’s head of economics, said the trend was down to a combination of low pay increases, interest rate hikes and, in London, Brexit – which has led to reduced demand for property from Europeans. "This can be viewed as an end to the Golden Age for house prices, or (more realistically) as a return to the pre-1970 era of stability," he claimed.
The bad news for young Londoners wanting to get a foot on the housing ladder? According to JLL, Sadiq Khan's plans to boost housebuilding won't necessarily make the capital more affordable because it likely won't be fast enough and there still won't be enough properties. Either way, some good news is better than none, right?