The average house price in the UK is set to increase by over 20% to by the end of 2019.
UK house prices are set to rise by more than 20% to an average of more than £230,000 within the next four years, according to a new forecast.
BNP Paribas Real Estate predicts that the average price of a home in this country will increase to £236,691 by the end of 2019, led by gains in the south of England.
The global property adviser estimates that by the end of this year, the average residential property price in the UK will have risen by 4.7% to £206,314.
The forecast suggests that the strongest house price growth over the next four years will occur in the service sector-dominated economies of the south of England.
BNP Paribas forecasts that the average house price in the South West will have appreciated by 33% by the end of the decade and that during the same period average prices in the South East will rise by more than 27%.
The North of England is expected to witness the weakest growth over the next four years. The report suggests growth of just 8.1% in the North, bringing the average house price in this region up to £134,249.
Despite fears that the house prices are overpriced in the capital, London property prices are set to increase by an average of 16.1% between now and the end of 2019, with the average price of a home rising to £529,660.
“Regions with a greater economic contribution from the service sector will see stronger price growth, particularly where there is still a degree of catch-up following the financial crisis,” said Adrian Owen, head of residential at BNP Paribas.
“In contrast London will, on average, see relatively weak, below-trend growth over the next four years,” he added.