Partner Article

Property consultants JLL forecast 3.5% house price growth in the North West

House prices in the North West are predicted to rise by 3.5 % next year, according to property consultant JLL.

This compares to a forecast of 1.5% in central London.

However, the figure falls just below JLL’s prediction of a 4% increase for the UK overall.

The highest rates of growth in 2015 will be in Greater London (5.5 %) and the South East (5 %).

JLL forecasts growth of 5% in the North West in 2016 and total growth of 22.2% over the next five years.

Manchester and higher value areas in the region are expected to outperform this regional rate.

The consultant says that rising employment, strong economic growth and schemes like Help to Buy have all strengthened demand for housing.

It believes the market is the strongest it has been in five years.

JLL argues that the biggest upward pressure on prices is now constrained supply.

JLL has a team of 150 property consultants in the North West.

The teams specialisms include investment and capital markets, hotels and hospitality, retail, property valuation, building consultancy as well as residential, offices and industrial agency.

The firm advises a range of clients across a variety of sectors and is regularly involved in some of the largest property transactions in the North West

Commenting on the figures, JLL’s lead director of regional residential, Stephen Hogg, based in Manchester, said: “The North West, like much of the rest of the UK, has seen a resurgence in demand and prices.

“Manchester in particular has been one of the country’s star performers of the last two years and it will continue to do well.

“But we face a situation where a lack of supply is pushing up prices to a level where affordability and the ability to raise a deposit are once again becoming an issue, despite the valiant efforts of initiatives like Help to Buy.

“Addressing our long-term supply requirements is the real game-changer.

“This will mean tackling issues relating to planning, helping to release more land for development, and skills shortages within the construction sector itself.

“Fortunately, housing appears to be a big agenda item for each of the main political parties and so we’re hopeful that whoever wins the next election will be ready to turn words into action.”

This was posted in Bdaily's Members' News section by Sophia Taha .