The top 4 influencers on UK house prices in the next 5 years
40% of those asked in a survey from property finance lender, LendInvest thought that the national economy would have the biggest impact on the market, followed by 24% who thought political developments, such as Brexit, would have an effect.
Shortage in housing supply was the concern given by a fifth of respondents, and 16% focused on the implications of key transport developments, including HS2 and Crossrail.
LendInvest’s Director of Development, Steve Larkin, felt the results showed a positive attitude towards the housing market’s immediate future: “It is great to see that the next generation of SME housebuilders are so confident about prospects for the housing market in the medium term. Typically, we might expect to see more scepticism or concern surrounding the impact of Brexit on the market. Likewise, shortage of supply is the conventional culprit for pushing house prices up.” he said.
“Naturally we must wait to see how the economic and political developments of the next year or two unfold. But for now, it’s encouraging to see these aspiring developers taking such a fresh perspective on the market they’re entering.”
House price’s top 4 determining factors
According to LendInvest’s survey:
1. The economy
2. Political developments
3. Supply shortage
4. National infrastructure