Property prices in London will continue to rise in 2017, but investors will increasingly look to other UK regions for growth, RSM’s latest survey suggests.
The RSM Real Estate and Construction Sector’s ‘Beyond 2016’ survey found that 52% of respondents said London prices would rise in 2017 albeit at a slower rate than in the past. While around a third (31%) thought prices would plateau and just 14% said prices would fall.
Asked to name which region outside London would attract the most real estate investment over the next 12 months, the South East came top (at 28%), followed by the North West (18%), while the South West and West Midlands came joint third (at 11% each).
A majority of those questioned said that the rising cost of housing in London and the South East will create further growth in the private rented sector (61%) and an increase in conversions from office to residential accommodation (53%).
The survey, conducted among property investors, developers, lawyers, bankers and agents, also revealed that more than 70% anticipated that the cost of borrowing would remain the same over the coming year, while 8% believed that borrowing costs could fall even further.
