Bristol, 11 June 2012
– South West house prices are on the up, but to avoid market stagnation experts at Jones Lang LaSalle
warn that the lending situation must improve to enable both new development and owner-occupier purchasers to obtain mortgages at affordable levels.
being presented by the property advisor at its South West residential outlook
conference this week (13th June) will confirm the market has been improving over the past six months and is expected to continue.
Jones Lang LaSalle predicts that overall the South West as a whole will perform broadly in line with national forecasts, with house prices increasing from 2% in 2013 to 5% by 2015; and Bristol house prices rising 2.5% in 2013 to 6% by 2015 also in line with national forecasts.
The analysis shows that affluent areas in the region remain robust, but representatives warn that the housing market will stagnate if supply levels, lending levels and interest rates remain low. Low interest rates will mean fewer forced sales. Conversely at the higher end of the market, quality properties under £2m are more likely to make a quick sale due to the sufficient numbers of affluent buyers in the area.
Clare Kelly, director at Jones Lang LaSalle, said: "It’s encouraging to see that house prices have started to rise over the last six months and we predict that trend will continue over the next three years. However, the real challenge remains limited supply and low levels of lending.”
Paddy Sykes, director in Jones Lang LaSalle's residential team, added: “In addition to seeing an improvement in the wider economic situation, to really stimulate the housing market we need more supply to come to the market, whilst reducing constraints on development wherever possible to ensure new schemes are viable.”