House Prices in UK to rise 30% in 5 Years According to Rightmove

Average house prices in England and Wales are set to increase by 30% in the next five years, with the national forecast reinforcing the north/south divide.

See this article from Rightmove. 

The new forecast comes from a collaboration between the UK’s number one property website Rightmove and leading economic forecaster Oxford Economics. It is the most comprehensive house price forecast of its kind ever created, based on property and economic data rather than opinion and short-term market factors. It takes into account both asking and sold prices, surveyor valuations and analytics from the Oxford Economics’ Global, Industry and Regional forecasting models.

The regional forecasts are as follows, with London growing on average by 32.5%.

The five fastest performing areas versus the five slowest performing areas.

Benign Economic Environment Assumed
Of course, these forecasts assume a benign economic environment.  Do not forget that while UK's growth prospects look good, a lot of risks and uncertainties exist.  How would the global economy pan out in the next five years, is not certain.

Impact of upcoming General Election
The UK General Election is also due in 2015.  Again, it is not clear which Party would win, the polls are too close to call.

Don't Buy Blindly
Remember, this bullish prediction is all about averages.  Don't rush in to buy blindly.  In fact, we have not bought anything in London for quite some time now.  There are potential deals and we are looking, however, we have observed that prices are quite high, especially the new-builds that are marketed to overseas.

All that said, it is still good to hear that the market is generally bullish with regard to UK property prices.

Thanks for reading.