Thursday 8 October 2020 1:37 pm

UK house prices to rise 20 per cent by 2024

UK house prices are expected to soar more than 20 per cent by 2024, according to the latest research.

Analysis by estate agent Savills found that UK property prices will jump 20.4 per cent in the five years to 2024

Average house prices are expected to increase four per cent this year before stagnating in 2021. 

Read more: UK house prices jump again in September as market defies gravity

House price growth across the UK is forecast to pick up again in 2022, when values are set to rise four per cent, and accelerate to 6.5 per cent by 2023. 

The research showed the UK house price growth in 2024 would slow again to 4.5 per cent.

Prices in the North West will grow the fastest compared to other regions, followed by Scotland and Yorkshire and Humber.

Meanwhile house price growth in London is forecast to be weaker in the years to 2024, with the worst result out of all UK regions, at just 12.7 per cent.

Central London prime housing prices will rise 15.7 per cent during the period, compared to a to per cent drop this year. 

Analysts predicted that outer London and the suburbs would see prices rise10.3 per cent and 13.6 per cent respectively. 

“As a clearer picture emerges, regarding the search for a vaccine, future requirements for social distancing or a second lockdown, as well as the pace and geography of the economic recovery and the government’s policy response – so the outlook for the housing market will inevitably change,” Savills said in its autumn update.

“With the prospect that economic forecasts will be downgraded over the coming weeks, we can be fairly confident that the current level of momentum in the market will be difficult to sustain through the remainder of the year, particularly as furloughing unwinds, despite the replacement Jobs Protection Scheme.

Read more: UK housing market remains buoyant but braces for downturn

“Because of the underlying economic risks and the sheer volume of mortgage applications currently being submitted, there is evidence that lenders are seeking to focus their resources on low-risk lending.

“This means equity-rich buyers are driving a market which is more favourable to home movers than first-time buyers and cash as opposed to mortgaged buy-to-let investors. We expect this trend to continue over at least the next 12 months.”