Our lives revolve around our homes more than at any point in the past 250 years. In our ‘Home is for…Everything’ report, we looked to the future of UK house price and rental value forecasts for the next five years, the effect of the Covid-19 and the role technology would play in satisfying our needs and wants in our home. In our Spring 2021 Forecasts, we offer valuable insight into the next five years and predict strong house price growth.
Our Spring 2021 Forecast assumptions:
The UK housing market is set to continue to confound expectations with JLL now predicting strong house price growth across all markets in 2021.
As our November 2020 report Home is…for Everything stated, our homes have become the centre of our lives prompting many to re-evaluate their living priorities. These changing priorities will continue to drive buyer and renter behaviour in 2021
with a dedicated space for home working and a garden becoming more of a focus for families in particular.
However, demand for city living will also bounce back in 2021 with a growing appetite to return to social, bustling urban centres, particularly driven by younger generations. JLL has been monitoring rising demand for homes in key cities prompting our
expectations for strong house price and rental growth in London and other major regional UK cities over the next 12 months.
Despite Covid-19 causing a record contraction in GDP and rising unemployment, over the past 12 months the UK housing market has seen the highest level of house price growth since before the EU Referendum in June 2016.
Prices have continued to grow strongly in 2021 on the back of the supportive UK Government measures such as the extended Stamp Duty holiday, 95% Mortgage Guarantee scheme and the speed of the COVID-19 vaccine rollout.
JLL now forecasts that price growth will be 4.5% in the UK and 6% across London in 2021.