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