07 Nov 2018
According to a recent report, property prices in Northern England may increase by a fifth as the North-South divide is expected to contract in the next five years.
House prices across Britain will rise in line with average incomes from 2019 to 2024, according to estate agent Savills’ predictions. They are also forecast to rise by 14.8%, which would increase the average property value by an additional £32,000, taking it to £248,086.
However, house price growth will vary across different areas – from 21.6% in the North West of England to 4.5% in London.
London, where prices are still the highest and have increased by 72% over the past 10 years, will experience the slowest price rise.
Prices will increase by 9.3% in both the South East and East of England, Savills predicts. At the other end of the scale, notable price rises will be seen in the North West of England, Yorkshire and the Humber (20.5%), the East Midlands, West Midlands and Wales (all 19.3%), Scotland (18.2%) and the North East of England (17.6%).
House prices in Scotland and Wales were recovering at a slower rate from the financial crisis than London, according to Lucian Cook, head of residential research at Savills.
"Brexit angst is a major factor for market sentiment right now, particularly in London. But it is the legacy of the global financial crisis - mortgage regulation in particular - combined with gradually rising interest rates that will really shape the market over the longer term," he said.