Welcome back to the Experience Invest blog, where we discuss the latest trends in the residential market, student accommodation and care home investments. New research released by Savills, the international real estate agent, suggests prime commuter housing markets will outperform London by 2020.
Commuter belt potential
Though the popularity of urban living is set to continue, with buyers seeking out locations with a mix of shops, restaurants and leisure facilities, Savills predicts there will be more interest in commuter zones.
Prime London property prices are currently nearly 37% above their pre-recession (2007) level, compared to a 6.6% rise in prime commuter bands during the same period. However new forecasts predict this disparity in growth is set to change.
Within the next five years, prime housing markets in London suburbs, and those areas within a 30 minute or 60 minute train journey of London, are expected to grow by between 23% and 25%, according to Savills’ report.
Meanwhile, five year growth figures for prime central London and prime London markets are anticipated to reach 21.5% and 18.2% respectively.
Short term forecast
The reason behind the figures, is the huge potential for growth in commuter zones. However, movement in the market will be very much dependent on influences such as stamp duty, mortgage rates and the speed of the prime London housing market. And, as Savills’ report stresses, the need for the market to acclimatise to an environment of new fiscal and industry regulations, will be a key factor too.
Prime housing markets across the country
Across the UK, the prime housing market is more likely to be determined by the performance of the local economy, combined with how popular an individual town or city is. Sophie Chick of Savills research says: “Positive sentiment for cities in the north of England is also being bolstered by talk of a northern powerhouse, despite the proposals being some way off.”
About Experience Invest
Experience Invest is a London-based independent property specialist working with clients across the UK and internationally. We focus on sourcing real estate opportunities across the UK. Our specialisms include residential investments, student property and care home investments. The company has been featured in The Telegraph, on Yahoo Finance, and by Reuters.
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