U.K. house prices could grow more than 21% over the next five years, according to a forecast released in the U.K. Tuesday by the property group Savills.
The average price of a home in the U.K. is expected to rise 4% in 2021, with 21.1% total growth predicted by 2025, according to the report, published Tuesday in the U.K. Deals for homes could reach 1.4 million this year, but activity should return to its normal level, at around 1.2 million annual transactions, by 2023.
“2021 is going to be a complex and uneven year, with competing forces impacting the housing market at different points,” Lucian Cook, Savills head of residential research, said in the report. “But the outlook has improved since the beginning of the year given the speed of the vaccination program, the expected relaxation of social distancing measures and government support for both jobs and the housing market.”
In addition, transactions and mortgages are well above pre-pandemic levels, and announcements last week from the U.K. government will help the real estate market.
“By extending both the stamp duty holiday and the furlough scheme [unemployment benefits] in last week’s budget, the chancellor has significantly reduced the downside risks in the mid-year, while a recovering economy should support price growth toward the year end,” Mr. Cook said in the forecast. The stamp duty holiday, which eliminates the transfer tax on the first £500,000 of the purchase price, has been extended to the end of June in England and Northern Ireland.
The post U.K. Home Prices to Rise 21% Through 2025, Savills Forecasts appeared first on The Mortgage Bureau.
https://www.themortgagebureau.co.uk/uncategorized/u-k-home-prices-to-rise-21-through-2025-savills-forecasts/
No comments:
Post a Comment