House prices set to soar in post-Covid boom

Significant growth in residential property prices has been forecast by Savills, which predicts the UK housing market will remain buoyant with prices set to rise by an average of 20.4% by 2024, despite the current Covid-19 pandemic, which has heightened uncertainty over the economy, employment, and of course finances.

Average property prices are expected to increase 4% this year before stabilising in 2021.

Home price growth across the UK is forecast to pick up again in 2022, when values are set to rise 4%, and accelerate to 6.5% by 2023.

The research revealed that UK house price growth in 2024 would rise again, albeit at the slower rate of 4.5%.

According to the research, prices in the North West will rise the fastest compared to other regions, followed by Scotland and Yorkshire and Humber.

In contrast, London is expected to see the weakest growth over the next few years, with prices set to rise by 12.7% between now and 2024.

Analysts forecast that outer London and the suburbs would see prices increase by 10.3%and 13.6% respectively over the next four years, while prime properties in central London are expected to rise 15.7% during the period.

Savills issued an autumn update stating: “As a clearer picture emerges, regarding the search for a vaccine, future requirements for social distancing or a second lockdown, as well as the pace and geography of the economic recovery and the government’s policy response – so the outlook for the housing market will inevitably change.

“With the prospect that economic forecasts will be downgraded over the coming weeks, we can be fairly confident that the current level of momentum in the market will be difficult to sustain through the remainder of the year, particularly as furloughing unwinds, despite the replacement Jobs Protection Scheme.

“Because of the underlying economic risks and the sheer volume of mortgage applications currently being submitted, there is evidence that lenders are seeking to focus their resources on low-risk lending.

“This means equity-rich buyers are driving a market which is more favourable to home movers than first-time buyers and cash as opposed to mortgaged buy-to-let investors. We expect this trend to continue over at least the next 12 months.”

x

Email the story to a friend

More top news stories



5 Comments

  1. Property Poke In The Eye

    I tend to switch off when I see these types of forecasts.

    Happy Friday.

    Keep focused – Keep Positive

    Report
  2. AlwaysAnAgent

    In June they forecast house price falls of -7.5% in 2020. The report was issued on 17th June.

    Their forecast has now changed to +4%. At the time they wouldn’t have known about the change to Stamp Duty and this shows what a complete unexpected bolt from the sky this was.

    Report
  3. info@cantellandco.com

    Lucian Cook mid lockdown said 10% falls based on no data points whatsoever zzzzzzzzzzz

    Report
  4. James White

    I think almost every forecast was wrong at the start of the first lockdown.

    Nobody knew how long it would last, nor did they know the extent of Government support, stamp duty holidays etc, and I don’t think anyone realised we actually had a years worth of pent up demand, what with the Brexit Election etc etc

    A lack of stock will be the next enemy for agents… and away we go again with another lockdown too..

    Interesting times for sure…..

    Report
  5. Richard Hair

    I love these forecasts and have saved this one. Let’s take a look back in 12 months to see if ANYONE got it right.

    I’m up for a completely different forecast and am going for:

    2020  +5%

    2021  0%

    2022 -5%

    2023 -8%

    2024 -8%

    I don’t have much clue but cannot see how we can get away without a nasty recession on the back of the worst recession since the 1930s

     

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.