New research from specialist property finance lender, LendInvest, has revealed what respondents to a survey think will affect house price growth in the next five years.
When asked what will have the biggest effect on house prices in the next five years, nearly half (40%) of those surveyed viewed national economic growth as having the greatest impact.
Only a quarter of respondents (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 only a fifth (20%) of those surveyed, while 16% of aspiring developers cited the construction of new infrastructure such as the new HS2 and Crossrail lines as the key influencing factor.
Steve Larkin, Director of Development at LendInvest, commented: “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.”