UK expected to see house price surge in 2017
House prices across the UK are expected to increase by 2.2 per cent this year, representing a rise of around £4,460, on average. This means that the average property could be worth £210,000 before the start of 2018, according to a new forecast from property consultancy BNP Paribas Real Estate.
The forecast suggests that the London property market will pick up pace, with growth set to reach 1.3 per cent this year. If this happens, it will reverse the city's house price fall over the 12 months to February that was reported by the Royal Institute of Chartered Surveyors (RICS).
Over the next four years, BNP Paribas Real Estate is estimating that London property prices will see strong growth of 6.8 per cent, meaning average home prices will reach around £505,000 by 2021.
A number of other regions were highlighted as being expected to perform well over the next few years. The consultancy is estimating that the South West, East Midlands and West Midlands will see price rises of 22.2 per cent, 13.6 per cent and 13.1 per cent, respectively, by 2021.
The South East commuter belt will likely see pressure put on those looking for properties, with prices expected to rise by 17.3 per cent. This could offer some good opportunities for landlords looking to invest in property over the next year or so.
John Slade, chief executive of BNP Paribas Real Estate, said: “The big debate in London is the extent of the impact on the £1,000 to £1,500 psf market. While we have seen some adjustment, people now realise that high stamp duty may be here to stay and pricing has adjusted accordingly. While 2017 may be a year of relative stagnation this market should return to stronger growth thereafter.”