INTERNATIONAL REPORTS
22/06/2012
UK | Residential
Housing and the Economy July 2012
The Housing Market has drifted sideways - June 2012
An ongoing housing supply shortage will drive rental growth in core city locations, underpinning house prices and preventing decline as the UK economy struggles to return to form.- Nonetheless, the increase in UK average house prices will be fairly muted in the near term, but a recovery in the economic backdrop and employment market should be sufficiently healthy to produce more robust growth throughout the rest of the period. We are forecasting average annual growth of 6% p.a. over the next 5 years.
- The North/South divide will broaden, and the southern regions will continue to outperform the rest of the UK, particularly in London and the South East where the economic outlook is stronger even in the near term.
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