Economic growth to have greatest effect on house prices

Michael Lloyd

May 10, 2018

Nearly half (40%) of aspiring property developers thought economic growth will have the greatest effect on house prices in the next five years, specialist property finance lender, LendInvest has found.

Only a quarter of developers (24%) believe political developments, such as further elections and impending Brexit, will affect house price growth the most.

A shortage in supply of housing is the biggest concern affecting house prices for only a fifth (20%), while 16% of aspiring developers cited the construction of new infrastructure such as the new HS2 and Crossrail lines as the key influencing factor.

Steve Larkin, director of development at LendInvest, said: “It is great to see that the next generation of SME housebuilders are so confident about prospects for the housing market in the medium term.

“Typically, we might expect to see more scepticism or concern surrounding the impact of Brexit on the market. Likewise, shortage of supply is the conventional culprit for pushing house prices up.

“Naturally we must wait to see how the economic and political developments of the next year or two unfold. But for now, it’s encouraging to see these aspiring developers taking such a fresh perspective on the market they’re entering.”

The next LendInvest Property Development Academy will be held on 6 July in London.

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