Date Published 13 June 2013
House prices will rise 5.5% by the end of this year and accelerate by nearly 30% over the next five years, Chesterton Humberts has predicted.
In its mid-year forecast, the firm says that house price growth in prime central London will average 8% each year between now and 2017.
Nick Barnes, head of Chesterton Humberts’ research department, said: `There has been a notable uptick in market activity so far this year, in no small measure due to the greater availability of record low mortgage deals.
`We have seen green shoots flatter to deceive before. However, this time around the level of consumer confidence appears more robust, and if favourable mortgage finance remains available, the long-awaited recovery may at last be sustained.
`What we need in tandem with this upswing, however, is an increase in housing supply to mitigate any potential price bubble.`
Chesterton Humberts is predicting that East Anglia will outperform Greater London for the first time since August 2005, enjoying average increases of 6.3% per annum between 2013 and 2017, compared to London’s 6.2%.
Despite the South continuing to outperform the rest of the country, Chesterton Humberts also projects that total growth in the other regions will all improve, with house prices in East Midlands and Yorkshire & Humber increasing by over 25% followed by West Midlands (19.6%), North-West (18.3%) and North-East (11.8%).