HIGHER demand and a dearth in supply will continue to fuel rising prices and rents in the commercial and residential markets in 2014, according to the latest research by Jones Lang LaSalle (JLL).
The property group predicts London prices will jump eight per cent this year, albeit a slight slowdown on last year’s 11 per cent growth.
In contrast national house prices are expected to rise by five per cent or between three and four per cent excluding London, which JLL head of research Jon Neale argued “was hardly cause for bubble talk”.
Housing transactions are expected to improve by 12 per cent this year, by this still remains well short of the 1.7 transactions that took place in 2006 before the crisis.
Speaking at conference held at BAFTA headquarters yesterday, JLL’s head of UK residential research Adam Challis warned that with the population set to grow by one million over the next decade, London’s housing shortage was unsustainable in the long-term.
“This could increasingly become a problem for the capital’s economy if companies find it increasingly difficult to recruit and retain younger staff who struggle with housing costs,” he said.