■ East of England to Outperform London: In November 2016, we forecast that the East of England would be the strongest performing region over the next five years, with house price growth of 19%. In Hertfordshire, this will be driven by a strong local economy and buyers moving out of London in search of better value for money.
However, the strong recent rise in values in parts of Hertfordshire means that buyers are becoming increasingly stretched. Future house price growth will be strongest in the lower value areas.
■ Continued Demand for Land: Given the strength of the residential market, demand for land in Hertfordshire is anticipated to remain high.
Housebuilders are predominantly seeking immediate land with capacity for 100–150 units without large remediation or infrastructure costs. In the longer term, there is always demand for well-located strategic sites, and registered providers are increasingly entering this market.
■ Infrastructure Driving Growth: Major infrastructure projects will act as a catalyst for development across the county, from Crossrail 2 in the east to the Metropolitan Line extension in Watford. Motorway upgrades could also release strategic sites in the north of the county.
■ Planning for Growth: Hertfordshire should be building almost 6,000 homes per year, but has delivered only half that number for the past five years. Failure to deliver enough homes to meet need will exacerbate affordability pressures and hinder wider economic growth.
Local authorities have a crucial role to play in bringing forward more land by identifying sites through the Local Plan process. Given the high levels of planning constrained land in Hertfordshire, it is essential that all local authorities produce up to date Local Plans, providing a strategy for sustainable development that will meet the county’s need.