On Thursday, LendInvest published the results of a survey of its LendInvest Property Development Academy attendees, which revealed that aspiring property developers have stated economic growth will have the greatest effect on house prices in the next five years.
According to LendInvest, 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%) reportedly believe political developments, such as further elections and impending Brexit, will affect house price growth the most. And 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.
Speaking about the survey’s results, Steve Larkin, 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.”
Larkin added:
“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.”