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.”