The Property Market in 2022

 

Let's look back to 1996 when the average house price in Waltham Forest was £60,388. Research by Lloyds Bank highlighted how house prices in Waltham Forest have shot up an eye-watering 617 per cent during the past 20 years. As of 2016, 20 years later, the average house price reached a whopping £433,105.

 

The Royal Institution of Chartered Surveyors (RICS) with a crystal ball in one hand and a calculator in the other have just released their predictions of the next five years of the property market. In the race between a rise in the rental price and the house price, RICS' latest report suggests that by 2022, an increase in rental prices will take the lead. The predictions point towards a 20% increase in house prices a 25% increase in rental prices.

 

But why is this the case? A reduction in housing supply in the market is believed to be a significant factor as landlords may shrink their portfolios or throw in the towel. This is believed to be triggered by tax changes. The government's changes in stamp duty that hit the landlord where it hurts in April 2016 and other changes in mortgage tax relief will reduce the number of landlords in the market. With less landlords, tenants will have fewer properties available to rent.

Published on 01 March 2017

Source Wonderlease

Written by Marc Cohen

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