Average Residential Property will cost
£267,000 by 2018
Average UK residential property prices for 2014
are estimated to be 2.3% higher than in 2007
Forecasts from the Centre for Economics and Business Research (CEBR) suggest that a typical residential property in the UK will cost an average of £227,000 (GBP) in 2014, overtaking the average peak price of residential property observed at the height of the housing bubble in 2007, for the first time.
The CEBR also predict that the average residential property price will be £222,000 (GBP) by the end of this year, 1.4% higher than average property prices reached in 2012.
By 2018, the CEBR expect the cost of a typical residential property in the UK to average £267,000 (GBP).
In 2014, the CEBR estimate that the Government’s Help-to-Buy scheme could raise UK property prices by up to 0.8% without having any appreciable impact on the current housing supply.
However, if the upward trend in residential property prices continues, it could lead to an additional 4,800 residential properties being built in 2015.
Daniel Solomon, CEBR Economist and main author of the report said: “By 2018, we expect the typical UK residential property will cost over 20% more than this year. Gradual wage and population increases will be the fundamental drivers of this medium-term trend. We expect the Chancellor’s new Help to Buy scheme will push up house prices before it raises housing supply. We predict that the scheme’s effects will be quite modest, but it could support the construction of roughly 5,000 new properties in 2015.”
This boost in the supply of new housing could provide a welcome route onto the housing ladder for a small number of aspiring homeowners, who are currently forced to continue living in rented property in the UK private rented sector (PRS) while they are saving a deposit for a property purchase.
- Click to share on Facebook (Opens in new window)
- Click to share on Twitter (Opens in new window)
- Click to share on Google+ (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to email this to a friend (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to share on Pocket (Opens in new window)
- Click to print (Opens in new window)
- Click to share on Pinterest (Opens in new window)