The ‘golden age’ of London property prices has come to an end, with predictions for them to stay flat next year.
Property consultants JLL forecasts “a return to the pre-1970 era of stability”, with no rise next year and then only a 1.5 per cent recovery in 2019 and 2 per cent in 2020.
This is in stark contrast to an average of a 9.5 per cent upsurge a year over the past two decades.
House prices are expected to rise elsewhere in the UK, up by 3.5 per cent by 2022.
This announcement coincides the decision from the Bank of England to increase interest rates for the first time since 2007, from 0.25 per cent to 0.5 per cent, a contributing factor to the price stagnation.
It has also been attributed to low wages and lack of affordability. The uncertainly that Brexit brings could weaken the housing market, but JLL’s report states that foreign investment could still be high after the UK is outside the EU.
JLL say the government’s target of building 200000 new homes will be reached by 2020.