The thriftiest of property seekers were dealt a blow today as news filtered through that average house selling prices in the UK will climb by 30% over the next 5 years, according to Rightmove.
The UKís prevalent online property website, and its partnering consultancy firm, Oxford Economics, underwent a comprehensive examination of various areas across the nation, coming up with some surprising inferences. Amongst these include the radical outlook that house prices outside the capital will outstrip those within over the next 5 years, with Southampton seeing houses rise at the fastest rate across the country. An average Southampton household can rest assured, if Rightmovesí data is to be lent appropriate credence, their dwelling will be 43% or £100,000 more valuable by 2019.
Average prices in London are expected to rise by roughly 33%, but it is those living in Londonís conveyor belt most notably the South East who will profit most from the capitalís intrinsic costliness, with house prices in these areas anticipated to grow by up to 37% of their current values. Comprised of a scattering of shires and the stately Surrey, South Eastern households have seen their properties soar in value in recent years and if Rightmoveís latest findings are to be believed, this trend will endure until at least 2019.
On the other hand, the North West will see the slowest rate of house price growth, with properties projected to increase in value by 24% by 2019 to £174,289. The average London property is expected to go for £715,267 by 2019, a statistic which offers some perspective on the astounding disparity between housing markets on opposite sides of the country.
A further testament to the disproportionately expensive London housing market, is Rightmove & Oxford economicsí assertion that Enfield, at present one of the most affordable boroughs within London, will see house price growth of 39% with average values jumping from £381,000 to a massive £531,000 by 2019.
However, west Londonís house price growth is forecasted to stutter significantly, increasing by a relatively small 14%, more comparable to Northern cities such as Hull and Manchester which have undergone marginal upwards price movement in recent years.
In its opening notes, Rightmove lauds its latest report as ìthe 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 Economicsí global, industry and regional forecasting modelî.
The property websiteís report is impressive in its scope, incorporating a range of dynamics in its detailed investigation. Forecasting increases in real wages, a population boom and unrealistic governmental aspirations for the supply of affordable housing, Rightmoveís predictions yield only one logical conclusion and that is consistent house price growth.
Miles Shipside, Rightmoveís director and housing market analyst, said: ìUnderstanding the path of future house price growth is a key element of UK economic strategy and decision making, and our data driven forecasts contain insight not previously available from other commentators or the governmentís own forecasts produced by the Office for Budget Responsibility.î
However, this viewpoint somewhat contradicts other influential viewpoints of late, with Nationwideís housing data for September revealing a 0.2% fall in house prices ñ the first in 17 months. Besides this, Halifax, the nationís largest mortgage lender, asserted this week that house prices will continue to grow but at a far more gradual rate. The Bank of England itself noted that falling demand, as a result of wariness stemming from the threat of an interest rate hike, will also contribute to the steadying of house prices.
David Newnes, director of Reeds Rains and Your Move, commented: ìFor six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score ñ and a North/South divide in the field remains evident in the race back from the debris of the financial crash.
ìAverage house prices on sales completion in the South West set a new record in August, surpassing their October 2007 peak for the first time. This makes it the fourth region after London, the South East and East Anglia to scramble out from under the shadow of the financial crisis.î
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