This year will see the UK’s property market will continue to become stronger in 2015, building upon the health that has been witnessed in the last couple of years, while also becoming far more sustainable for the long term, it has been reported.
According to the latest findings reported by the CBRE, returns may be a little lower in 2015 than they were in the booming year that was 2014. However, this is fantastic news for the future of investments, as it will mean the market becomes far more sustainable and steer clear of any threat of overheating.
The report states that in 2015, the overall returns expected from real estate will reach an average of 13 per cent, down slightly from the 20 per cent that was in evidence in 2014.
This slowing will be most evident in the first part of the year, thanks largely to the uncertainty that’s likely to arise around the upcoming general election. However, CBRE said that the second six months of 2015 will see the market bounce back from this, with investors seeing rental yields climb in most sectors.
Many have predicted that this will be the year of buy-to-let, with rental prices set to outpace the market for house prices in 2015.
CBRE also expects to see confidence remain high in the property market, with a continued inflow of investments throughout the year.
“This has been a year of extraordinary expansion across the property sector and while this will continue into 2015, overall there will be a return to more sustainable levels of growth,” said Miles Gibson, head of UK research at CBRE.
In line with other forecasts, Mr Gibson said that CBRE expects to see more investors moving away from London and into the north of the country, where regional yields are performing much better.
This will be especially true in the commercial sector, where all areas except retail property are confident moving forward. Although this sector could still see a strong year, there remains some uncertainty around it at the moment.