What next for the housing market?

Historically, rental growth has followed income growth, which drives our prediction of 15.4 per cent UK rental growth over the next five years. 

On balance we expect housing transactions to remain stable over the next five years at 1.2m a year. But there will be a shift among buyer types: falls in investor purchase as mortgaged buy-to-let tax rules tighten, and stronger growth for mortgaged home movers.

The number of first-time buyers, however, will remain highly reliant on the detail of government’s plans to support them post-Help to Buy.

Lawrence Bowles is a senior research analyst at Savills