London and UK house price forecasts 2020-2024
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UK house prices are forecast to rise by an average of 15.3 per cent over the next five years, with significant variation between regions, and between the prime and mainstream markets, particularly in London.
It is prime central London, where median values stand at just over \\xa32.75 million, which is forecast to be one of the strongest performing markets, reversing a trend seen over the past five years.
Meanwhile at a national level, Brexit and election-related angst will continue to act as a drag on the market over the short term, but we expect prices to rise broadly in line with incomes thereafter. Average rents are expected to rise 18.8 per cent in London and 13.1 per cent across the rest of the UK, against income growth of 15.6 per cent.
Lucian Cook, head of Savills residential research team and senior analyst Lawrence Bowles discuss the different drivers across the prime and mainstream markets and the assumptions that underpin their 2020-2024 forecasts.