Date Published 03 December 2012
House prices in London will have shot up by 73% between 2010 and 2020.
The prediction comes from a property firm, BNP Paribas Real Estate, mainly known for its commercial activities.
The firm is also forecasting that UK house prices will have grown 24% in the next four years – between now and the end of 2016.
The forecast says that there will be a fall this year in UK house prices of 1.1% but a growth next year of 0.9%. In other words, house prices will have to get motoring from 2014 onwards, if the prediction is correct.
The firm says that last year, house prices in London grew 2.7%. This year, growth will be much the same at 2.65%, but next year, it is forecasting London house price growth of 6.6%, and 7.1% in 2014.
Tim Cann, head of residential at BNP Paribas Real Estate, said: `With some very early tentative signs of some improvements in the housing market, our forecast for 2013 is more upbeat than 2012, with UK house prices forecast to grow 0.9%.
`Whilst this increase won't offset the falling values experienced in 2011 and 2012, positive growth will certainly be a move in the right direction.
`Beyond 2014 we are expecting the UK growth rate to accelerate, with UK house prices forecast to rise 8.8% in 2015.`
BNP Paribas Real Estate put its house price forecast together with the help of Professor Patrick Minford, former economics adviser to Margaret Thatcher and currently professor of economics at Cardiff Business School.
The company, which is part of a European bank, appointed a new chief executive for its UK operation, John Slade.
Its then chief executive Mark England – who was made chief executive in 2006 and launched the brand in the UK – took up a new role as managing director, reporting to Slade who promised to lead ‘the next chapter in the UK'.
This time last year, the firm was – correctly – predicting a lack of first-time buyers and an oversupply of flats in towns.
In the summer the firm produced a report, Housing the Nation, about the National Planning Policy Framework.