Your property: Boom or Bust?

Average London house price growth was predicted to slow from 16.9% between 2013 and 2014 to 11.5% over the next 12 months, by three top property economists at last night’s ERC Property Boom or Bust debate. The rate of increase in all other areas of England and Wales was predicted to continue to grow.

Property experts Gráinne Gilmore (Knight Frank), Matthew Pointon (Capital Economics) and James Wyatt (Parenthia) predicted the following at last night’s Economic Research Council Property Boom or Bust event:

LONDON

  • Average year on year London house price growth was predicted to slow from 16.9% between 2013 and 2014 to 11.5% over the next 12 months
  • However, London’s average house prices will grow by more than 10% in the next year with an average house price given of £485k across all three experts
  • By 2019 house prices will have increased by 25%, with the average property costing £544k

NORTH EAST

  • Average house prices predicted to grow at double the rate of last year at 6%
  • Growth in the North East is predicted to be slow and steady over the next five years
  • House prices won’t reach 2007’s average house price peak of £127k until 2019

ENGLAND & WALES

  • Biggest average house price rises are still expected with all three experts predicting an 8% increase over the next 12 months, an increase of 1.2% on 2014’s average house prices
  • House prices will surpass 2008’s national peak in the next 12 months
  • The rate of price hikes is predicted to decline slowly from 2015 onwards, with property prices beginning to plateau from 2019