Rightmove Claims House Prices Will Rise 30% in 5 Years
In contrast to the widespread predictions of a ‘cooling’ property market ahead, Rightmove has released a new report claiming that house prices will increase by 30% in the next five years. While this would bring London’s average house price up to £715,000 it will actually be areas outside of the capital that are likely to see the swiftest rise in property values. The report predicts that the south-east areas of Britain are likely to be affected by the ‘spillover’ of London’s high prices, with Southampton’s house values set to increase by almost £100,000 on average by 2019 and Luton, Brighton and Swindon to follow a similar trend.
The report from Rightmove contradicts forecasts by the Royal Institution of Chartered Surveyors of a “fading price momentum” and similar claims by Halifax. The Centre for Economics and Business Research is even predicting price falls as of next year. Rightmove claims that their report is actually
“the most comprehensive house price forecast of its kind ever created, based on property and economic data rather than opinion and short-term market factors. It takes into account both asking and sold prices, surveyor valuations and analytics from the Oxford Economics’ global, industry and regional forecasting models.”
It also takes into account population growth, the poor availability of new homes, and a projected improvement in incomes. In spite of the potential for rising interest rates next year Rightmove predicts a continuing upward trend in house prices that will put the reality of home ownership even further out of reach of many first time buyers in the UK.
Read more at The Guardian.