Real estate group JLL has released its latest forecast the UK housing market.
They are predicting outlook for prices in 2023 remains broadly unchanged, the firm forecasts that house prices will fall by 6% nationally in the year to December 2023. In London, prices are expected to decrease by 4% in the same period. However, in central London, a downgrade is predicted, with prices expected to fall by 3%, down from the initially forecasted increase of 2.5%.
They predict that this lack of stock will affect the rental market, saying that a lack of new rental stock and a challenging interest rate environment will lead to rental growth exceeding wage growth next year, with rental prices across the UK expected to increase by 5.0 per cent in 2024.
.JLL’s residential research director Marcus Dixon says: “Despite the uncertainties faced by the UK property market, we have seen resilience and stability over the past year. Looking ahead, we forecast a bottoming out of prices in 2024, with single-digit annual falls likely.
“The UK housing market still faces challenges in terms of supply, with a cumulative shortfall of 720,000 homes expected between 2023 and 2028. Addressing these structural barriers is crucial for achieving meaningful increases in supply and mitigating affordability issues.”