A recently published report from Knight Frank suggests that rental prices in London are set to increase by an average of 15% over the next five years. Compared to the rest of the UK which is projected to raise by an average of 10% in the same period this is no small figure.
The five-year rental forecast report suggests that prime central London will rise by around 10% with and 11% rise in prime outer London. It also predicts greater rises in specific and outer parts of the city, culminating in the average overall rise of 15%.
It is predicted that the forecast for 2020-2024 in residential property prices will increase by around 13%, which is slightly lower than the UK average of 15%.
However, property prices in prime central are expected to surge by 18% across the same period. This would mean significant gains could be earned by any would-be investor across the period.
The Head of London Residential Research for Knight Frank, Tom Bill, commented:
“Overall, we are forecasting price growth of 2% across the UK in 2020 and of 15% cumulatively between 2020 and 2024.
“Slightly stronger growth is expected in the South East and East of England supported by a more positive outlook for economic and employment growth over the next five years. Once the Brexit deal is completed, we forecast rising momentum across all markets, with price growth reflecting this from 2021 onwards.
“In prime London markets, the erosion of the currency discount as well as the possibility of stamp duty changes for non-residents will weigh on demand in the short-term. After that we expect stronger growth to return before a dip in 2024, the date of the next scheduled general election.”
MAKE THE MOST OF THE UK’S NEWFOUND STABILITY
With the recent election results a period of 5-10 years of stability is virtually guaranteed across the UK economy. This has led to a surge in the value of the pound and greatly improved optimism in the property market.
If you are looking to invest in property, there are few places where you can expect better and more predictable returns than in prime central London.
Contact Walton Estates today to talk to us about how we can help.