Developers predict Economic growth to have biggest impact on house prices
40% of aspiring property developers believe that national economic growth is set to have the most significant impact on house prices in the near future.
This is according to a survey by LendInvest, which also revealed that factors commonly in the media were predicted to have less of an impact on the growth of house prices. Political developments, such as the UK’s departure from the EU, was only viewed as a factor to impact growth by 24%.
Whilst 20% cited a supply shortage as the biggest concern, 16% of those surveyed felt that development of new infrastructure – such as HS2 – was the most significant factor to impact price growth.
Commenting on the results of the survey was Steve Larkin. The Director of Development at LendInvest stated: “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.”