Experts predict that house prices in the UK will rise by 25% in the next 5 years. Both Savills and Knight Frank believe the housing market will increase and consumers should be confident over the next 5 years.
Knight Frank stated that they expect a 7% growth in 2014 and a further 4% growth in 2015.
This week the Bank of England Governor said the recovery from the recession had “taken hold” and that it’s anticipated unemployment will fall quicker than previously forecast. Mr Carney reported that unemployment was down 0.2%, from 7.8% to 7.6% however he wouldn’t consider changing interest rates until unemployment was below 7%.
Many people are stuck in a financial predicament meaning they can’t sell their property and move on. An increase in the value of properties is likely to give consumers more options with their property.
Knight Frank, head of residential research Liam Bailey said
“For the first time in five years we can be broadly positive about the UK housing market. Price growth is encouraging transactions, contributing to labour mobility, and first-time buyers are able to access the market in a way they could not even 12 months ago. Importantly these improvements are not limited to London, they are spreading.”
As employment declines, the economy begins to settle and financial products return to the market, financial planners will need to support their clients with a range of financial products including mortgages, insurance and financial planning.