Houses prices in England and Wales to rise 30% by 2019
The average house price in England and Wales is set to rise by 30% over the next five years according to new research.
The average house price is set to shoot up by 30% in the next five years.
That's according to new research from Rightmove and Oxford Economics. The study also emphasised the north/south house price divide.
Regional forecast
The forecasts have been compiled using property and economic data, including asking and sold prices, surveyor valuations and analytics from Oxford Economics’ Global, Industry, Industry and Regional forecasting models.
The predicted house price growth varies sharply between the North West (24.3%) and the South East (37.3%).
|
Region |
Five-year forecast |
|
National (England and Wales) |
30.2% |
|
South East |
37.3% |
|
East |
35.6% |
|
London |
32.5% |
|
South West |
31.8% |
|
Yorkshire and the Humber |
27.9% |
|
West Midlands |
26.5% |
|
Wales |
25.9% |
|
East Midlands |
25.0% |
|
North East |
25.0% |
|
North West |
24.3% |
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The fastest performing areas
As the table above shows, the biggest price increase is expected to be in the South East. Rightmove and Oxford Economics argue it will benefit from the “ripple effect” from London, which will see house prices grow by 33%. Towns within commuting distance of London will grow the fastest: think Southampton (+43%), Luton (+41%), and Brighton (+41%), as the table below outlines.
|
Area |
Forecast house price growth |
|
Southampton |
42.9% |
|
Luton |
41.0% |
|
Brighton |
40.6% |
|
Swindon |
40.4% |
|
Enfield |
39.5% |
The slowest performing areas
West London identified as the most modest area of the capital for house price growth, with only a 14%. increase expected This keeps it in line with slowly rising northern cities such as Carlisle (17%) and Manchester (19%).
|
Area |
Forecast |
|
West London |
13.6% |
|
Carlisle |
17.4% |
|
Lancaster |
18.1% |
|
Manchester |
18.8% |
|
Northampton |
20.5% |
The factors behind house price growth
According to the report, some factors will have a greater effect on certain areas than others when it comes to house prices. For example, exchange rates have a significant effect on house prices in prime areas of central London which are most likely to be popular with foreign buyers. In the South East however, employment and population growth are key.
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More on housing:
How to cope with interest rate rises on your mortgage
Most Recent
Comments
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I stumbled upon this (current @ October 2014): https://www.moneyadviceservice.org.uk/en/static/interest-rates "One in five mortgage holders said they would ‘really struggle to find the extra money’ to cover any increase in repayments ... Nearly half would find it difficult to cover up to £150 extra per month ... Over a quarter don’t know what their current mortgage interest rate is ... 56% have no contingency plans should interest rates rise."
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Prices are already fake and inflated thanks to low interest rates and government scams. Prices may have risen in London, but they have been stagnant for ages in the rest of the UK. Think about the maths. We have a bank rate of near zero. This means buyers max-out on what they can afford each month. There is no mechanism for buyers to afford more in the future. Interest rates cannot go any lower. Therefore they will not be able to afford to pay back any more. Prices depend on what buyers can afford, so prices are going nowhere. Up 30% is a total nonsense. What will happen is that interest rates will have to go up. Monthly payments go up and in turn prices are going down.
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Has anyone with a vested interest in residential property EVER predicted a crash? Nobody should be allowed to prophesy about the next five years unless they first tell us what they were prophesying five years ago.
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13 October 2014