10 Apr 10.04.2018 House prices forecast in the UK
10.04.2018 House prices forecast in the UK
House price growth in the UK has slowed, partially due to the uncertainty of the outcome of Brexit negotiations, but lack of supply means that the prices are unlikely to drop and property values in the UK are expected to rise by 2019. According to Countrywide, house prices across the UK are expected to rise by 3% by the end of 2019.
According to property index HomeTrack, the house prices in the following 5 cities are set to rise the most over the next 4 years:
Property prices in Edinburgh, Manchester and Birmingham are forecast to experience price rises of up to 30% over the next 4 years. Hometrack’s UK cities house price index recorded year-on-year increases of 7.3% in Birmingham, 7.7% in Edinburgh and 6.7% in Manchester.
In Edinburgh, house prices are expected to jump by £67,000 by January 2022. Currently, the average home in Edinburgh will cost you £218.600. This is followed by Birmingham and Manchester, with houses there reaching £154,600 and £158,800 respectively. House prices in Liverpool and Leicester are also forecast to grow by around 6% over the next year.
The 5 cities come well ahead of 1.6% in London, where, in 2016, house prices rose by 6%, however, over the past year house price growth has fallen to just 1.8%. At present, London property affordability is at an all-time high of 14.5 times earnings. The average home currently sells at £412,000. Weak growth continues in Oxford, where prices are expected to leap just 1.1% over the next four years. In the 12 months to January 2018, properties rose by 0.9% – the average home now costs around £425,700.
Richard Donnell, insight director at Hometrack, said: “The income to buy a home in regional cities is well below the London average so in the near term we expect to see rising house prices stimulating additional buying and market activity in those areas. House prices have some way to increase before there is a material constraint on demand. This assumes mortgage rates remain low by historic standards and the economy continues to grow.”