We come to the end of the First Quarter of 2017 with a lot going on in the world, locally and globally, several things are happening and have happened that affect our markets.
The year started off with a greatly discounted Sterling, which has been to the benefit of the foreign inbound investment.
Uncertainty regarding what will happen with Brexit was rampant and caused a lot of caution from buyers foreign and domestic.
Donald Trump started his presidency with a line-up of policies that could have a large impact on foreign markets. This has created some interesting inbound investment from US firms looking to either move some investments out of the US or place money abroad till the reality of these new policies set in.
The Government released its Housing White Paper, which has had mixed reviews, though it has provided some insight into the government's plans to keep pushing for more housing, particularly suited towards rental housing which appears to be the topic of choice in news these days.
Across London, house prices increased year on year to Jan 2017 by 7.27% (Land registry data runs a couple months behind) however, sales volumes are still down significantly over 2 thirds year on year.
London Annual Property Price Change
What does this mean for the year ahead, expectations are for gradually slowing growth, with estimates ranging from 2 - 5% growth in house prices from leading economist at PWC and S&P. To add some more insight into these forecasts/predictions, I would also include the notion that most of the growth will be found in the market segment under £1m and more than likely higher still below £600k, where supply constraints are highest and affordability is at its broadest.
I am always interested in discussing more localised views and opinions and perhaps look at some areas that are performing very different to the general market, so feel free to email me and let's continue the discussion.