Prime and Mainstream residential forecasts
Changes to the housing sector are to be expected now that a new government has settled into place, and who are keen to stamp their mark.
For those of you who are interested in the data, Savills provide insight into both the Prime and Mainstream housing markets, highlights and links to the research below:
Prime market
the abolition of ‘non-doms’ status,
the addition of VAT on school fees,
the additional 2% stamp duty surcharge for second home buyers and investors both north and south of the border, and
restrictions on inheritance tax reliefs.
https://www.savills.co.uk/research_articles/229130/368928-0
Mainstream
UK values are forecasted to grow by 4% in 2025 and 23.4% over the next five years.
Growth will be driven by steady base rate cuts over the next two years, improving affordability.
The North of England and Scotland are expected to be the strongest regions, with the North West forecasted for nearly 30% growth over five years.
London's five-year growth forecast has increased from 14.2% to 17.1%, remaining the weakest due to affordability constraints.
Annual transactions are expected to reach 1.15 million by 2028, slightly below the 2017-19 average of 1.2 million.
Stamp duty changes will reduce activity from Buy to Let investors and cash buyers.
Rents are expected to grow by 17.6% over five years, slowing to match income growth in the latter half of the forecast period.
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