Average UK house price will rise £40k in the next five years, says estate agent Savills

The average UK house price will rise more than £40,000 in the next five years, says Savills, from £327,838 to £370,785 in 2026.

It expects the North-South divide to continue to shrink as affordability issues in London affect prices, though it thinks prime central London will outperform other prime and mainstream markets.

Lucian Cook, Savills’ head of residential research, said: ‘With the prospect of inflationary pressures persisting into next year, bringing forward the first anticipated interest-rate rise, we expect price growth in the near term to be somewhat more muted than we have seen of late.

Stress testing of affordability has meant existing borrowers are unlikely to get into trouble as rates creep up. 

'But it will cap how much new buyers can borrow relative to income in a higher interest-rate environment – a drag on prospective price growth and market activity.’

(source: www.iammoney.co.uk)