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Say Jones Lang LaSalle in their mid-year residential market update
London, 27th August 2013 – Jones Lang LaSalle believes the outlook for the UK housing market has improved in the first half of 2013, forecasting that house prices in Prime Central London will rise by 6% this year and 3% nationally as reported in its mid-year residential market update. Summary Mid-Year Price Forecasts
Increased government support for the housing market, most notably through Funding for Lending and Help to Buy has fundamentally altered market accessibility for purchasers. New-build property has experienced a disproportionately strong impact from these programmes which is feeding through to demonstrable increases in demand. The introduction of Phase 2 of Help To Buy will further broaden access to the housing market by improving the availability of high loan-to-value mortgages.
Commenting on the market, Adam Challis – Head of UK research at Jones Lang LaSalle said: “As a result of Help To Buy and Funding for Lending, both aimed at strengthening the housing market, we have chosen to revise our forecasts up for this year and next, to reflect the strength of these programmes resuscitating the housing market in the short-term. We predict the greatest increase to be in Central London where the economic fundamentals continue to support demand; however we do not expect this strong growth rate to continue at the same level in both London and the regions, once these programmes have run out and interest rates begin to increase.”
In Central London, international demand has remained strong due to a combination of factors driving capital migration from global markets, alongside the fundamental attractiveness of property ownership in London. Jones Lang LaSalle has also seen increased domestic demand from both investors and owner-occupiers as more supply comes into the market.
Looking forward, we predict that this stable price growth and improving demand will begin to push up housing delivery rates by 10% - 15% later this year and into 2014.
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Felicity Young - PR
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