According to a new study by property website Rightmove and experts at Oxford Economics, the average house prices in England and Wales will rise by 30.2% over the next five years, with the fastest growth taking place in town and cities in the South East.
Increased property values up to 37.3% by 2019
The report predicts that house values will rise by 37.3% in the South East, 32.5% in London and 24.3% in the North West (where values will rise at the slowest pace) by 2019. It also examined the value of property in specific areas, such as the Home Counties and outer boroughs, which are believed to be benefitting from the ripple effect of increased house prices in London.
Slowing property price increases in London
The prediction from Rightmove comes just after the Royal Institution of Chartered Surveyors announced they are seeing property prices fall in London for the first time in nearly four years.
Whilst property prices in London have been strong, they are forecast to rise at a slower rate than the South East and East Anglia, with prime central London having a slower rate of growth, after the frantic rises in property prices experienced earlier this year.
The forecast was based on actual property and economic data rather than just opinion. It took into account both the asking and sold prices of properties, as well as surveyor valuations and analytics from the Oxford Economics’ global, industry and regional forecasting models. These models use various different economic data to forecast growth, economic performance and house price inflation.