Analysts at the property group JLL, have predicted the cost of the average home in the South East will increase by 26.4% by the year 2020. This is the fastest rate of growth of any region of the UK and is due to better job prospects, rising wages and a more stable economy.
The value of the average home in the popular South East area is currently £256,737 and is thought to grow to £324,540 in the next five years.
House prices in the East are likely to jump by 25.8% from £211,161 to £265,656 and in the commuter belt of Greater London, homeowners will see values increase by 24% to £620,006.
The most dramatic rises will be in Manchester, Bristol, Leeds and Edinburgh which are
The Head of residential research for JLL, Adam Challis said “Many owner-occupiers have deferred moving house over the past seven to eight years following the global financial crisis but with the outlook more positive and stable we expect at least some to seize the opportunity to move home, releasing pent up demand, as well as more stock, onto the market”.
He continues that “The whole housing market could potentially be more active. However, continued high moving costs despite lower stamp duty burdens for most, will provide some brake on transactions, as too will the lack of choice for buyers,”.
The Bank of England had expected a rise in interest rates next year which poses a mild threat to the housing market recovery, but it’s believed that the bigger risk will come from outside the UK following the collapse of the Chinese stock market and the overall slowdown in its economy.
Out of all regions, central London is expected to show the slowest rise in house prices with a 17% rise by 2020 and just 1% in 2016, although the average value is still most likely to hit £3,244,317 over the next five years.
The following areas are expected to overtake the bigger regions in terms of house price growth by 2020, these areas attract graduates and people relocating to new jobs:
- Manchester Leeds,
- York and Harrogate
- Maidenhead and Slough