Property values continue to grow. According to an average of independent estimates, prices will conclude the year 5.8% higher than when they began.
The annual price increase has slowed since the double-digit numbers seen in May and June. But, the quest for space remains a driving force. Working from home, at least part-time, will be a lifelong legacy for many of COVID-19. According to the current RICS poll, properties are selling rapidly, and the majority of estate agents believe prices will continue to climb over the next 12 months.
Experts expect prices to grow by 3.9% during the course of 2022, according to an average of independent predictions made so far in 2021.
Let’s look at some price predictions for the marketing in upcoming years…
2023
As we near the close of the regional cycle, the North will generate growth of 3% in 2023. The economy’s recovery will define the medium-term forecast for the housing market, with income growth and the rate at which interest rates rise is significant in determining the direction of home prices. If interest rates rise faster than projected, affordability will ache, and price inflation will slow.
However, the combination of economic recovery and the increased significance of housing should sustain activity above pre-pandemic levels. Hamptons predicts that prices in the United Kingdom will climb 3% in the fourth quarter of 2023.
Price growth predictions for 2024
Experts expect the cycle to stop, but prices will distribute more evenly among areas than ever before. A housing price cycle typically lasts around 16 years. The cycle often begins with London’s price rise accelerating, as it did between 2008 and 2016. This usually triggers a reduction of the price disparity between London and the regions when prices in the North catch up.
In the penultimate year of a cycle, there are frequent indicators of price acceleration in London. They anticipate this to continue in 2024. With London home prices expected to rise from 1.5% in the fourth quarter of 2023 to 3.0% in the fourth quarter of 2024.
The difference between London and the rest of the country, on the other hand, is expected to stay more significant than after past cycles. With property prices in London expected to grow by 7.0% over the following four years, Hamptons predicts that by the end of 2024, the average home in the city would cost 87% more than the national average. The difference remained at 59% at the start of the housing boom in 2008, increasing to 117% in 2016.
Hamptons predicts that the North East will have the fastest price growth over the next three years, with prices rising by 21.5%. However, the region’s average price will remain 41% lower than the national average unless regional economic growth accelerates by 2024.
If you are thinking of moving house and aren’t sure where to start looking, give our team at Qube Residential a shout for any queries.
Source: Dataloft, HM Treasury, average of independent forecasts published in 2021 to date. Hamptons & HMRC.
