UK Property Sales & Rental Predictions for 2012

Reports on Property Wire indicate that the gulf that currently exists between the London property and rental markets and the UK property and rental markets is here to stay and will continue forward well into 2012.

According to forecasts made by Hamptons International, the two-tier UK property market (whereby property prices and rents in London are increasing rapidly) is likely to roll forward into next year.

The growth of the capital’s prime property sector is on target to continue, with analysts expecting a 4% increase in sales values in 2012.

The rate of growth predicted for high end London property is in sharp contrast with expectations for the UK property market as a whole. Hamptons predict that mainstream sales values across the UK will fall by 2%.

Hamptons International made the additional predictions about the UK property and rental markets:

Exchange rates will support demand from international customers for prime central London property.

The Bank of England is not expected to increase base rate, which paves the way for favourable mortgage rates.

Country property sales in southern England are expected to decline slightly.

Rents in central London will still be high in 2012, which in turn is likely to push tenants who can’t afford them further out into other areas of the capital and beyond.

Rental markets in areas such as Islington, Ealing, Clapham, Wimbledon, Richmond, Esher and Guildford have all been highlighted for growth during the next 12 months.