THE PROPERTY
INTERESTING forecast has been made by global real estate agents Jones Lang LaSalle (JLL), who specialise in all areas of UK proper ty, with promising news especially if you live in the London commuter belt.
ting in The Daily JLL have forecast a price growth of 13 per cent during the next six months for homes on the outskir ts of the city and in the suburbs within the M25 – outstripping the three per cent projected growth of prices of the capital’s central boroughs of Knightsbridge, Mayfair, Kensington, Chelsea and Belgravia.
Adam Challis, head of residential research at JLL, said: “London housing market has found a new equilibrium which remains robust, but perhaps a little less frothy than it has been. We have forecast price growth in the commuter belt well ahead of the rest of the UK… owing to an overweight of demand.”
research explained that it appeared the increase in commuter belt value may be as a consequence of the recession, as developers then concentrated on building luxur y homes in London’s central boroughs to capture both overseas and domestic buyers. supply of new-build homes, and second-hand proper ty coming to the market, has helped to balance demand and dampened the runaway prices seen in the capital during the past year. added that the approaching election has cooled demand for ‘plush’ homes of £2million-plus and, with a possible mansion tax in the armoury, the demand for homes in that bracket will fall.
Mr Challis fur ther commented that: “shor t the house price ‘bubble’ is simply not a reality for most of the UK.
are only modestly above average and are typical of a recover y cycle where demand is moving ahead of the supply response in both the new-build and second-hand markets.”
He was also critical of the anticipated moves by the Bank of
to interfere with the housing market by commenting that “…with the majority of households in the UK only seeing a modest improvement in the value of their homes over the past year, after five years of weak or falling prices, effor ts to cool the national housing market recovery seem heavy-handed and premature.”