In its latest house price forecast, the property firm said that the “clarity” following the Conservative majority in the General Election would help release some of the “pent-up demand” that has built up in recent years.
The firm forecasts house prices will grow by 15 per cent by 2024, pointing to stronger growth in the south east and east of England supported by more positive prospects for economic and employment growth.
It continued: “Once the Brexit deal is completed, we forecast rising momentum across all markets with price growth reflecting this from 2021 onwards.”
Looking at the prime market in the capital, Knight Frank cautioned that the “erosion of the currency discount”, coupled with the likelihood of higher stamp duty charges for non-residents would hurt demand in the short-term, with stronger growth to follow after that.
It concluded: “While development levels are rising across the country, the shortage of new homes is unlikely to be fully reversed in the coming years and this will underpin values. On the other hand, factors such as deepening affordability pressures and property taxes will continue to weigh on pricing.”