House prices predicted to rise more than 20 percent in the next five years, despite the immediate effect BREXIT is having on the property market
According to The Centre for Economics and Business Research has suggested that house prices predicted to rise could mean the average house price in the UK could reach £234,000 by 2021, a rise of £40,000 from the current average of £194,000.
Quick Move Now’s managing director, Danny Luke, commented:
I certainly agree with the sentiment of the predictions made by The Centre for Economic and Business Research.
Nationally there is a property shortage. Whilst the fallout from Brexit has caused, and is likely to continue to cause, shockwaves in the UK property market, people still need more homes to live in than we currently have available. After the initial impact to the market, I believe the strong demand for a greater number of homes – which is likely to be exacerbated by slowdown in the number of new homes being built by a nervous construction industry following Brexit – will correct the market, and long term we will continue to see growth.
The process of Brexit is likely to be a lengthy one however, with negotiations predicted to take two years from the triggering of Article 50, so I’m not sure whether the growth predictions made by The Centre for Economic and Business Research are perhaps a little over-ambitious.
I do think long term we’ll see growth in the market, and we’ll see more of a ‘pause’ to the market rather than the crash some were predicting, but the lengthy process of Brexit might well drag out the market uncertainty a little longer than The Centre for Economic and Business Research is suggesting and we may not feel the full effect of Brexit until we officially leave the European Union in two years time.
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