When you’re looking to buy or sell in the near future, it’s always a good idea to keep one eye on the property price forecast for the next 5 years to ensure you make the right decision.
Ever since an outcome was reached on Brexit, it’s been widely known that this would affect the UK and Leicester housing market in some way, however, the extent of it has been uncertain.
Forecasted property prices in the UK
Although not an exact science, it is thought that house prices will increase by 2.5% this year and the next.
This will grow to 4% per annum over the following three years after that. All in all UK house prices should see growth as high as a cumulative 18% over the next five years, although this growth will clearly not be as rapid as in previous years.
The reason for this is Brexit related uncertainty, increasing mortgage constraints and rising interest rates, however, despite the slowdown, house prices should still continue to rise gradually, due to the ever-present demand for housing in general.
Some might say that the slowdown brings a more realistic level of growth. After all, in London, for example, the housing market went through the roof in recent years, leaving it virtually impossible for average earning people to get onto the property ladder. Things needed to change in order to provide the housing so desperately needed in our capital.
So, despite the fact that house price growth is likely to be between 14 and 18% over the next five years for the UK, as opposed to the 28% seen in the previous five, perhaps, in some ways, this isn’t such a bad thing.
The uncertainty surrounding Brexit means it is extremely difficult to forecast exactly what the housing market will do from 2019, but ultimately, despite the evident caution, people will still require housing and have the need to move, whatever the reason.
Following the slowdown, there is also a great likelihood that the housing market will bounce back and we will see a return to growth once more political and economic stability has come back to the UK.
So, do I buy now or wait?
Once Brexit has been resolved and the UK has found its feet again with regard to economic stability, the growth of house prices could begin to gather pace. Therefore, right now could well be an excellent time to buy.
In future years there’s likely to be more competition for housing on the market as people get more confident about buying once more. In addition, the slowdown in house price growth could also make sellers willing to accept offers well under the asking price.
In a time of uncertainty, making the most of fixed lending levels would be sensible with further interest rate increases on the cards, but buying could be the best decision you make, safe in the knowledge that it’s extremely unlikely prices will fall over the next few years.
Ask our experts for advice
Readings are one the largest and longest standing estate agents in Leicester, they have many years of experience in buying and selling properties and have witnessed the many changes in the market along the way. For advice on buying a property, get in touch with a member of the team today.