With the world focused on the Coronavirus pandemic, there is a lot of uncertainty about how each country will rebound from these unprecedented times.
Many industry experts, landlords and investors have been left wondering what the future holds for the UK’s property market, and how their real estate portfolio may perform over the coming months or even years.
According to the latest figures from Land Registry, as of February 2020 the average house price in the UK is £230,332. When compared to the previous year, property prices across the UK have risen by 1.1%.
Investors unsure of what course of action to take will welcome the positive outlook from Savills, who forecast a short-term dip followed by a fast, robust recovery. By 2022, Savills expects a cumulative rise of around 15% in five years, in line with its previous forecast of November 2019.
The latest data from Savills looks at two potential scenarios that are based on how fast the UK managed the current spread of Covid-19 and how long current restrictions will remain in place.
However, sentiment towards the UK’s property market appears more confident than it was during the 2008 global economic downturn.
“The significant falls in values and transactions in 2007 were a consequence of less credit and an imbalance of supply and demand, which had a bigger impact on pricing,” says Cook. “The current inability to transact and most people’s ability to put plans on hold, mean that the medium-term outlook now is a bit different to back then.”
Property investors who took advantage of the market back in 2008 have been rewarded with over a decade of growth in value and rental returns.
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