House prices are to increase by 30 per cent over the next five years, with the largest growth forecast to be outside of London.
Research from Rightmove contradicted claims that the UK housing market is on the way to a slowdown. Indeed, it was found that prices will jump by 30 per cent over the next five years to an average of £318,000 in England and Wales, with this figure standing at more than £715,000 in London.
Despite this, it is forecast that it will not actually be prices in the capital leading the way, with Luton one of the cities set to experience some of the fastest price rises.
Southampton will see the fastest jump of all, with an increase of 43 per cent expected to be seen by 2019. This will add almost £100,000 to the average price, locally. Luton, as well as Brighton and Swindon, are predicted to be close behind this figure.
According to analysts, it is a “spillover” effect of high London prices that is causing this rise of prices in the south east, while the parts of the capital that have enjoyed the most weighty price increases over the past five years are likely to see the smallest rises during this time.
Indeed, price increases of 13.6 per cent are expected in the more affluent parts of west London, while Enfield – traditionally one of the capital’s cheapest property areas – will see the biggest gains, equating to around 39 per cent in the next five years.
These predictions of gains come despite a number of reports forecasting a cooling off of the property market in the wake of a year of increases.
The Royal Institution of Chartered Surveyors, for example, has said that house prices dropped in London for the first time since January 2011, and stated that: “fading momentum is more than just a London story”.
Furthermore, Halifax noted that house price growth has hit a peak, and is now to grow at a significantly slower pace. Elsewhere, the Centre for Economics and Business research has said there will be price falls next year.