UK house prices set to grow by around 15% by 2023
The residential housing market in Britain is set to grow by around 15% in the next five years. A new forecast on house prices in the UK shows how homes are expected to rise at an average pace of 14.8 per cent by 2023.
According to the report, which was conducted by Oxford Economics and Savills, the average property in the UK will cost £248,000 by 2023.
There are regional differences regarding house price growth in Britain, with the North West forecast for the greatest growth during the next five years, at 21.6 per cent. London is set to see a more modest house price growth, poised to rise by 4.5 per cent by 2023.
Deviations within the London property market are expected, with the higher end of the market predicted to perform more strongly than the overall market in the capital. ‘Prime central’ properties in London are forecast to grow at a rate of 12.4 per cent.
The continued growth of high-end property prices in the capital is being pinned on the fact these types of buyers are more likely to pay cash for the property and are subsequently not affected by the changes to mortgage regulations in recent years, which now stipulates buyers are required to put forward hefty deposits in order to secure a mortgage.
The report also notes how London looks set to continue being a popular place to live and work after Britain exits the EU in March 2019 and will therefore remain a sought-after place to own high-end property.
It is also predicted that rents will continue to rise in Britain.
“Until the market sees a significant injection of build to rent stock, rental demand will outstrip supply and rents will rise,” noted Lucian Cook, head of residential research at Savills.
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