UK house prices set to surge over the next four years

By 2021, the average home is set to be worth around £272,000, according to a new report.

Residential property prices look set to increase significantly over the next few years despite Brexit-fuelled uncertainty in the market, new figures show.

According to the Centre for Economics and Business Research (Cebr), property values will rise by almost a quarter over the next four years – representing an average increase of £52,000 by 2021 as consumer confidence in the UK housing market remains robust.

Cebr forecast that the average price of a residential property in the UK will rise to £220,000 this year, marking a £9,000 increase compared with 2016, supported in part by a shortage of housing.

House Prices Increase Showing Return On Investment And Home Expenses

By 2021, the report suggests that the average home in this country is set to be worth around £272,000, which if accurate would mark an increase of around £52,000 compared with 2017 and an increase of 23.6%.

House prices rose by an average of 7.5% last year, but Cebr expect values to slow to below 5% per annum over the next couple of years while Brexit negotiations take place.

However, from 2019 the economics consultancy believes growth will pick up, with an annual rise of 5.7%, followed by increases of around 6% in 2020 and 2021.

Kay Daniel Neufeld, a Cebr economist and main author of the report, commented: “Already towards the end of 2016 indicators pointed to a stabilisation in the housing market, a trend that has continued in the first months of 2017.

“Transaction numbers are slowly recovering from the introduction of a stamp duty surcharge on second homes in April 2016, which has led to considerable distortions in the market.

“Mortgage approvals, are nearing post-crisis heights, boosted by low interest rates and favourable borrowing conditions.”

Cebr’s predictions for average UK property prices over the next few years are as follows:

+ 2017, £220,000

+ 2018, £229,000

+ 2019, £242,000

+ 2020, £256,000

+ 2021, £272,000