House prices could grow by 35% between 2020 and 2025
Residential property prices look set to increase in 2022 and beyond, according to the latest forecast.
One London agent has predicted that prices will rise by 7% next year in a ‘best case’ scenario, though it also made a ‘downside’ prediction of 2% growth.
Residential property prices look set to increase in 2022 and beyond, according to the latest forecast.
One London agent has predicted that prices will rise by 7% next year in a ‘best case’ scenario, though it also made a ‘downside’ prediction of 2% growth.
These new figures indicate the pace of growth will slow as market activity settles following a buoyant market motivated by the stamp duty holiday.
By comparison, UK-wide house price growth reached 10.3% in the year to Q3 2021, the highest year-on-year growth seen since Q3 2014, with housing transactions over the same period reaching 442,930, the highest recorded since Q3 2007.
Its predictions for Prime Central London (PCL) are however more positive and stand at 10% and 5% respectively. This follows the £5m-plus market increasing in Q3 2021, due to international high-net-worth buyers re-entering the market.
Guy Robinson, head of residential at Strutt & Parker, said: “The residential market has made a significant recovery in the last 12-months. This has been fuelled by high levels of demand across the market and attractive mortgage rates, while a rebound in the economy gave buyers and sellers confidence to trade up or down the housing ladder.
“Following significant house price growth year to date, rising at a rate that had not been seen for seven years, the outlook remains positive for 2022 and beyond. Buyer demand continues to be robust and applicant numbers are still significantly higher per property than any time since 2006.
Across the UK’s regions (excluding Greater London), between Q1 and Q3 2021 sales transactions were up 37.5% by comparison to the same period in 2020. Strutt & Parker’s analysis of housing transaction volumes reveal Scotland, the South West and East of England recorded the biggest jump in transaction volumes.
The estate agency has also updated its five year forecast estimating price growth in the UK of between 20% and 35% and in Prime Central London of 15% and 35%.
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