HOUSE prices in the capital are set to spiral further upward by more than a third in the next five years, according to new research seen by City A.M.
Property services firm CBRE expects the capital’s house prices to soar by an astonishing 34.8 per cent between 2014 and 2018, according to its latest forecast.
With severe restrictions on supply combining with investment from abroad and government schemes like Help to Buy, the group expects prices across the country to skyrocket, climbing 17 per cent in the next half a decade. London’s prices are set to accelerate at more than three times the speed seen in the north east of England and Scotland, and twice as fast as in the UK generally, if CBRE’s predictions are correct.
“These projections suggest London's growing masses of private tenants may as well give up any hope owning a home of their own,” said Duncan Scott of the Priced Out campaign group.
“Without urgent action to get over 50,000 new homes per year built in the capital, housing costs will be a punishing toll on the livelihoods of ordinary young Londoners,” he added.
Housing markets in the south east and south central region of England are also expected to heat up, with prices rising by more than 20 per cent over the same period.
Property website Zoopla will also reveal today that homeowner confidence has spiked, reaching a four-year high across the country. Sentiment is highest in London, with nearly 97 per cent of homeowners predicting that prices will rise in the year ahead.