Nearly half of aspiring residential builders in the UK say economic growth will have the greatest effect on house prices in the next five years, a new survey shows.
When asked what will have the biggest effect on house prices in the next five years, some 40% of those surveyed viewed national economic growth as having the greatest impact.
The survey from specialist property finance lender LendInvest also found that 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 20% of those surveyed, while 16% of aspiring developers cited the construction of new infrastructure such as the new high speed rail link HS2 and Crossrail lines as the key influencing factor.
‘It is great to see that the next generation of SME house builders are so confident about prospects for the housing market in the medium term,’ said Steve Larkin, director of development at LendInvest.
‘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,’ he pointed out.
‘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,’ he added.