8 Nov

UK property prices set to rise 25 per cent by 2018

UK property prices set to rise 25 per cent by 2018

UK mainstream residential property prices could increase up to 25 per cent by the end of 2018, according to a recent housing price forecast published by Savills.

A recent drive of new buyers into the property market suggests that independent agents could see prices rise by 17 per cent in the next three years alone.

The research indicated that the five year price growth will be capped by earnings growth, as increases in interest rates will lead to erosion in mortgage affordability.

Savills’ forecast also predicts a growth of 27 per cent in transaction levels within the market. This figures will still be 24 per cent below a fully functioning level and cash buyers will continue to dominate the higher end of the mainstream property market.

“Cash buyers currently account for around one third of the whole market, their numbers being within 16 per cent of the 15 year average prior to the credit crunch. A meaningful increase in transactions is likely to be dependent on improvements in mortgage lending,” said Lucian Cook, head of UK residential research at Savills.


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