Certainty will return to the UK housing market, according to JLL’s Residential Forecast report
- UK house price growth is set to rise 14.8% by 2024
- UK GDP to gather momentum with a growth forecast of 1.7-2.0% pa post-Brexit
London, 26 November 2019 – With the General Election and Brexit conclusion on the horizon, the UK economy and housing market is once again set to enter a period of greater certainty, according to JLL’s UK and London Residential Forecast Report, ‘Living with 2020 Vision’.
Whilst the start of 2020 will be subdued, UK house price growth for the next five years is expected to accelerate by 14.8%. Within the UK, house price growth in regions such as London, Yorkshire & Humber and East of England will outperform, although other regions may face challenges to achieve similar growth.
The lettings market will experience renewed energy and vigour following a slow five years. Across the UK, JLL expects rental growth to improve by 12.0% by 2024, with fundamental population changes, such as shrinking family size, longer life expectancy and demand for flexible, urban living space supporting the growth of renting.
The positive outlook for the housing market matches the forecast for the national economy, with GDP growth estimated between 1.7-2.0% pa. Topping the league tables, London will remain one of the fastest growing, dynamic and innovative cities in the world. Far outshining the rest of the country, annual GDP growth in the capital during 2021-2024 is predicted to grow between 2.3-2.5% pa. Regardless of the anticipated exit from the European Union in early 2020, the London economy will attract renewed business investment and confidence, catalysing growth overall.
Nick Whitten, Director of UK Living Research & Strategy, JLL said: “We’re coming to the end of a long period of uncertainty and 2020 marks a key moment in time for all of us to reassess and firm up the infrastructure and economies that will support the UK’s future success.
“As we approach the General Election, we expect housing to ride high on the political agenda, as society faces fundamental social changes our towns and cities will see the highest housing demand. We are seeing an ever-increasing connection between living and technology, as well as growing climate and social awareness, and it is vital that the key political and economic stakeholders, investors and developers embrace these new opportunities to ensure the UK economy and housing market can achieve the momentum we predict for the next five years.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.