Kay Neufeld, Senior Economist at the Centre for Economics and Business Research, said: “The UK housing market has had a rough year so far. The market is characterised by low transaction levels and subdued price growth. In the short term, we expect these conditions to prevail.

 

“Domestic demand over the next five years will depend on how painful the readjustment of Britain’s economy will be as the UK leaves the EU. Any forecasts further down the line are highly dependent on the final outcome of the negotiations and how hard it will be for the UK to adapt to new relationships with the EU and other countries. This will also determine the attractiveness of the UK for international investors.”

 

Despite this, Neufeld forecasts that residential house prices in the UK will be growing by 25% on average by the end of 2022, and by 30% in the capital over the same period.

 

Read the full article here.