Housing market uptick: what the indicators are saying
House prices and sentiment have seen a slight uptick in the past month, although growth remains modest as markets in London and the South East continue to dampen the market.
The RICS has said that modest national averages – annual UK HPI is 4.4% – mask a more positive picture across most of the country, and it said transaction levels appear stable across most regions and are higher than two years ago.
House prices and sentiment have seen a slight uptick in the past month, although growth remains modest as markets in London and the South East continue to dampen the market.
The RICS has said that modest national averages – annual UK HPI is 4.4% – mask a more positive picture across most of the country, and it said transaction levels appear stable across most regions and are higher than two years ago.
However, London continues to be a drag, with transactions down a fifth on three years ago.
The view is – generally speaking – that provided there are no further shocks in the run-up to the UK’s departure from the EU, and government support continues, the regional market will continue to prosper.
There is a similar story in the land market: land values in London continue to decline, while both brownfield and greenfield sites outside of the capital continue to increase.
Government support has been particularly important to the new-build market outside London, and as a result land values outside the capital have continued to grow.
Most housebuilders’ results have been “strong” this year, buoyed by the regional markets.
Savills’ five-year forecasts continue to predict that London will see the least growth against the regions, and that growth in the housing market more generally will slow after 2020.
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A version of this article appeared in the 19 May print edition of EG with the headline “Is the resi market building to a recovery?”
