The increase of house prices in the capital is to slow down dramatically over the next five years, predict global estate agents, Savills.
The total value of housing in London increased by 61% between 2009 and 2014, and 20% of that happened in the last year alone.
Savills’ Katy Warrick commented: “This value gap simply cannot widen at this rate indefinitely, which is why we expect mainstream London to see just 10.4% growth over the next 5 years, compared to 19.3% across the UK as a whole.”
The research points to mortgage regulation being the main reason limiting price growth in the coming years. With the new rules implicated late last year, combined with poor wage growth and fast-moving house prices, the market has become a tough playing field.
The estate agent believes the capital’s price growth will be constrained as fewer first-time buyers will be able to become home owners.
Savills have put together a publication containing further information, please click here to see the full report.
Article By: Ratchelle Deary, Marketing Executive at Contractor Mortgages Made Easy
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