Average house prices in the UK are set to rise to £220,000 in 2017 according to a report from the Centre for Economics and Business Research (CEBR).
CEBR’s latest forecasts show that despite Britain’s decision to leave the EU, house prices are set to increase by 4.4% throughout the year and predicted growth will remain below 5% for the next two years.
Low transaction numbers over the coming years are expected to hold the price inflation down, with house price growth expected to remain subdued at 4.1% in 2018 before picking up again from 2019 onwards.
A projected slowdown in consumer spending and a potential blow to consumer confidence do however present downside risks for the UK housing market.
NAEA Propertymark member and CEO of Marsh and Parsons, David Brown said:
“A lot of the fears many had around Brexit haven’t materialised; both in terms of the wider economy and the housing market which has proven resilient. The London property market remains an attractive global hub, luring people from around the world to invest and live here. In many ways, the vote has actually brought vigour to some parts of the market, as we are seeing renewed interest from overseas property purchasers as a result of the weaker pound to complement the strong demand from domestic buyers.
“The strength we have seen in the market is reflected in mortgage approval data. At just below 70,000 a month, this is close to the post-crisis high of 74,000 in 2014 (CML figures) and we only expect that to increase in the coming months.”