Brexit might be causing some uncertainty, but the house price forecast for the next five years doesn’t look too bleak.
In fact, estate agents Savills has predicted the average price of a home in Britain will rise by £35,000 over the next five years.
The estate agents house price forecast suggests the value of a home should rise by 15.3 per cent by the end of 2024 – despite the uncertainty of Brexit. However, not all parts of the UK will see the same bump in house prices.
Prices in the North West are forecast to rise by the most, at 24 per cent. Closely followed by Yorkshire and the Humber, having the largest predicted house price rise at 21.6 per cent.
Scotland came in third place with price growth expected to be around 19.9 per cent.
In contrast, the house price forecast for Greater London doesn’t look so positive. House prices are predicted to rise by only 4 per cent.
See below to find out how much house prices are expected to rise near you over the next five years:
Savills house price forecast 2019
|2019 House price||2024 House price||Total 5 year growth|
|Yorkshire & The Humber||165,000||200,000||21.6%|
Savills house price forecast is based on the assumption that the pre-Christmas election will not end in a significant shift in policies. And Britain will have an ‘orderly exit’ from the EU next year.
In the short-term, Savills predicts Brexit and the election will act as a ‘drag on the market’. However, it should bounce back in the long-term, as prices continue to rise largely in line with incomes.
‘We anticipate a continuation of trends seen historically. Where London and the South East underperform markets in the Midlands and North,’ Lucian Cook, Savills’ head of residential research told the MailOnline.
‘This stage of the cycle appears to have begun in 2016, coinciding with the referendum, when London hit up against the limits of affordability,’ Lucian Cook adds.
‘Markets further from the capital, such as Leeds, Liverpool, and Sheffield, were much slower to recover post-financial crisis. And have a much greater capacity for house price growth relative to incomes, even as interest rates rise.’