While Brexit is causing some uncertainty in the property sector at present, the house price forecast for the next five years doesn’t actually look too bleak.
Estate agents, Savills, has predicted the average price of a home in Britain will actually rise by £35,000 over the next five years. The house price forecast suggests the value of a home should rise by 15.3 per cent by the end of 2024 on average.
Prices in the North West are predicted to see the biggest increase, at 24 per cent. Closely followed by Yorkshire and the Humber, having the largest predicted house price rise at 21.6 per cent.
However, not all parts of the UK will see the same bump in house prices. The house price forecast for Greater London doesn’t look so positive, where prices are predicted to rise by only 4 per cent.
Savills house price forecast 2019
It also suggested that borrowers were not as overstretched financially as in other parts of the country as in London, and so had a ‘capacity for higher loan to income borrowing’.
Lucian Cook, Savills’ Head of Residential Research commented : ‘We anticipate a continuation of trends seen historically. Where London and the South East underperform markets in the Midlands and North.’
The forecast is based on the assumption that Britain will have an ‘orderly exit’ from the EU next year – and the upcoming general election comes will little in the way of big policy change.
It’s widely predicted that in the short-term, Brexit and the election will act as a ‘drag on the market’. It should, however, bounce back in the long-term, as prices continue to rise largely in line with incomes.
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