Knight Frank Predictions
- January 12, 2016
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Knight Frank has issued more housing market predictions for 2016 which correspond with those issued by their rivals JLL, Savills and Strutt & Parker.
Their expectations show:
• Cumulative growth in mainstream house prices across the UK will total 20.3% by the end of 2020.
• The prime London and prime country markets higher transaction costs will continue to balance on activity and price growth in 2016 as the market soaks up the stamp duty changes.
• Prime central London prices are predicted to rise by 2% in 2016 and by 20.5% by 2020.
Knight Frank’s Global Head of Research, Liam Bailey has said “The price differential between most prime markets and the capital is likely to underpin price growth in 2016. As the economy continues to recover and house prices outside of London show further growth, the trend for more London buyers to move will gain traction, boosting the ripple effect from the capital”.
He believes the main risk to the market is rises in interest rates, when they come, they may very well be more rapid than expected.